A DYNAMIC PROGRAMMING HEURISTIC FOR RETAIL SHELF SPACE ALLOCATION PROBLEM

Hasmukh K. Gajjar and Gajendra K. Adil ()
Additional contact information
Hasmukh K. Gajjar: Shailesh J. Mehta School of Management, Indian Institute of Technology-Bombay, Powai, Mumbai, India 400076, India
Gajendra K. Adil: Shailesh J. Mehta School of Management, Indian Institute of Technology-Bombay, Powai, Mumbai, India 400076, India

Asia-Pacific Journal of Operational Research (APJOR), 2011, vol. 28, issue 02, 183-199

Abstract: Shelf space allocation to products greatly impacts the profitability in a retail store. In this paper, we consider a retail shelf-space allocation problem where retailer wishes to allocate the available spaces of different shelves to a large number of products considering direct space elasticity in the product's demand. There is a great interest to develop efficient heuristics due to NP-hard nature of this problem. We propose a dynamic programming heuristic (DPH) to obtain near optimal solution in a reasonable time to solve this problem. The empirical results found that DPH obtained near optimal solutions for randomly generated instances of problems with size (products, shelves) varying from (100, 30) to (200, 50) within a few seconds of CPU time. The performance of DPH is benchmarked against an existing local search heuristic (LSH). It was found that DPH takes substantially less CPU time and attains a solution close to that obtained by LSH. Thus, DPH has great potential to solve the problem of realistic size within reasonable time. The proposed DPH is also applied to a case of an existing retail store.

Keywords: Retail; shelf space allocation; dynamic programming; heuristic (search for similar items in EconPapers)
Date: 2011
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595911003120
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:apjorx:v:28:y:2011:i:02:n:s0217595911003120

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595911003120

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().