A piecewise linearization for retail shelf space allocation problem and a local search heuristic

Hasmukh Gajjar () and Gajendra Adil ()

Annals of Operations Research, 2010, vol. 179, issue 1, 149-167

Abstract: Retail shelf space allocation problem is well known in literature. In this paper, we make three contributions to retail shelf space allocation problem considering space elasticity (SSAPSE). First, we reformulate an existing nonlinear model for SSAPSE to an integer programming (IP) model using piecewise linearization. Second, we show that the linear programming relaxation of the proposed IP model produces tight upper bound. Third, we develop a heuristic that consistently produces near optimal solutions for randomly generated instances of problems with size (products, shelves) varying from (25, 5) to (200, 50) within a minute of CPU time. Copyright Springer Science+Business Media, LLC 2010

Keywords: Retail; Shelf space allocation; Piecewise linearization; Upper bound; Heuristics (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (10)

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DOI: 10.1007/s10479-008-0455-6

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