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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/13067

Title: A joint optimization model for inventory replenishment, product assortment, shelf space and display area allocation decisions
Authors: Hariga, M.A.
Al-Ahmari, A.
Mohamed, A.-R.A.
Keywords: Assortment; Inventory replenishment; Optimization; Space allocation
Issue Date: 2007
Publisher: Elsevier B.V.
Citation: European Journal of Operational Research, 181 (1), pp. 239-251.
Abstract: In this paper, we propose an optimization model to determine the product assortment, inventory replenishment, display area and shelf space allocation decisions that jointly maximize the retailer's profit under shelf space and backroom storage constraints. The variety of products to be displayed in the retail store, their display locations within the store, their ordering quantities, and the allocated shelf space in each display area are considered as decision variables to be determined by the proposed integrated model. In the model formulation, we include the inventory investment costs, which are proportional to the average inventory, and storage and display costs as components of the inventory costs and make a clear distinction between showroom and backroom inventories. We also consider the effect of the display area location on the item demand. The developed model is a mixed integer non-linear program that we solved using LINGO software. Numerical examples are used to illustrate the developed model.
URI: http://hdl.handle.net/123456789/13067
ISSN: 03772217
Appears in Collections:College of Engineering

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