An efficient algorithm to allocate shelf space

Shelf space is one of the most important resources of a retail firm. This paper formulates a model and proposes an approach which is similar to the algorithm used for solving a knapsack problem. Subject to given constraints, the proposed heuristic allocates shelf space item by item according to a de...

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Bibliographic Details
Published inEuropean journal of operational research Vol. 131; no. 1; pp. 107 - 118
Main Author Yang, Ming-Hsien
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 16.05.2001
Elsevier
Elsevier Sequoia S.A
SeriesEuropean Journal of Operational Research
Subjects
Algorithms
Heuristic
Heuristics
Inventory management
Knapsack problem
Optimization
Retailing
Shelf space allocation
Studies
Heuristics
Retailing
Shelf space allocation
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ISSN0377-2217
1872-6860
DOI10.1016/S0377-2217(99)00448-8

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Summary:Shelf space is one of the most important resources of a retail firm. This paper formulates a model and proposes an approach which is similar to the algorithm used for solving a knapsack problem. Subject to given constraints, the proposed heuristic allocates shelf space item by item according to a descending order of sales profit for each item per display area or length. Through the use of simulations, the performances of objective value and the computational efficiency of this method are evaluated. Three options are also proposed for improving the heuristics. Compared to an optimal method, the improved heuristic is shown to be a very efficient algorithm which allocates shelf space at near-optimal levels.
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ISSN:0377-2217
1872-6860
DOI:10.1016/S0377-2217(99)00448-8