Using Analytics to Enhance a Food Retailer’s Shelf-Space Management

Teresa Bianchi-Aguiar (), Elsa Silva (), Luis Guimarães (), Maria Antónia Carravilla (), José F. Oliveira (), João Günther Amaral (), Jorge Liz () and Sérgio Lapela ()
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Teresa Bianchi-Aguiar: INESC TEC and Faculty of Engineering, University of Porto, 4200-465 Porto, Portugal
Elsa Silva: INESC TEC and Faculty of Engineering, University of Porto, 4200-465 Porto, Portugal
Luis Guimarães: INESC TEC and Faculty of Engineering, University of Porto, 4200-465 Porto, Portugal
Maria Antónia Carravilla: INESC TEC and Faculty of Engineering, University of Porto, 4200-465 Porto, Portugal
José F. Oliveira: INESC TEC and Faculty of Engineering, University of Porto, 4200-465 Porto, Portugal
João Günther Amaral: Sonae MC, 4471-909 Maia, Portugal
Jorge Liz: Sonae MC, 4471-909 Maia, Portugal
Sérgio Lapela: Sonae MC, 4471-909 Maia, Portugal

Interfaces, 2016, vol. 46, issue 5, 424-444

Abstract: This paper describes the results of our collaboration with the leading Portuguese food retailer to address the shelf-space planning problem of allocating products to shop-floor shelves. Our challenge was to introduce analytical methods into the shelf-space planning process to improve the return on space and automate a process heavily dependent on the experience of the retailer’s space managers. This led to the creation of GAP, a decision support system that the company’s space-management team uses daily. We developed a modular operations research approach that systematically applies mathematical programming models and heuristics to determine the best layout of products on the shelves. GAP combines its analytical strength with an ability to incorporate different types of merchandising rules to balance the tradeoff between optimization and customization.

Keywords: retail operations; shelf-space allocation; mathematical programming; MIP-based heuristics (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:46:y:2016:i:5:p:424-444

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