Heuristic and meta-heuristic approaches for multi-period shelf-space optimization: the case of motion picture retailing

S Raut, S Swami () and M P Moholkar
Additional contact information
S Raut: Tata Consultancy Services Limited
S Swami: DEI (Deemed University)
M P Moholkar: GAD Group, IBM Global Services

Journal of the Operational Research Society, 2009, vol. 60, issue 10, 1335-1348

Abstract: Abstract The retail industry is in a highly competitive situation currently. The success of the industry depends upon the efficient allocation of products in the shelf space. Several previous authors have developed mathematical models for optimal shelf-space allocation. We extend the prior research in the direction of the multi-period problem and introduce more realistic characteristics, such as product demand perishability, pricing contract and cross-elasticity. The new characteristics help us address the case of the real-life movie allocation problem in multiplexes. We formulate a linear integer programming model to represent the problem. The proposed model shows a potential benefit of at least 11% increase in revenue for a multiplex theatre situation as compared to the existing methods. We also propose two greedy heuristics and a genetic algorithm to solve the same problem. A computational study shows that the genetic algorithm performs better than the existing method.

Keywords: shelf-space model; demand perishability; contract terms; genetic algorithm; multiplex (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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DOI: 10.1057/jors.2008.98

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