Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic Approaches

Jared M. Hansen, Sumit Raut and Sanjeev Swami

Journal of Retailing, 2010, vol. 86, issue 1, 94-105

Abstract: This research presents a retail shelf-space decision model that incorporates a nonlinear profit function, vertical and horizontal location effects, and product cross-elasticity. We propose a linear programming formulation of the nonlinear profit function that can solve the shelf-space problem optimally. We describe potential advances in heuristic and meta-heuristic algorithms and compare the approaches through simulations and a field experiment. We discuss the impact of the number of item facings, vertical location, and horizontal location (e.g., we find the vertical location effect is approximately double the size of the horizontal location effect on profit performance).

Keywords: Retail shelf space; Meta heuristic; Nonlinear profit function (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:86:y:2010:i:1:p:94-105

DOI: 10.1016/j.jretai.2010.01.004

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