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A model and solution approach for store-wide shelf space allocation

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  • Ostermeier, Manuel
  • Düsterhöft, Tobias
  • Hübner, Alexander

Abstract

Store space is limited and one of the most costly resources of retailers. Retailers have to apportion available store space among the individual product categories of a store and therefore assign a certain share of shelf space to each category. Assigning more shelf space to one category requires reducing the number of shelves for another category as total space is limited. Reducing available shelf space in turn decreases assortment size and lessens the presentation quantity of products and vice versa. Both affect the demand of products and ultimately the profitability of the entire category such that the profit contribution of a category depends on its shelf size. This interrelation between category sizes and store profits needs to be taken into account for the shelf space assignment to categories and the space allocation for individual products.

Suggested Citation

  • Ostermeier, Manuel & Düsterhöft, Tobias & Hübner, Alexander, 2021. "A model and solution approach for store-wide shelf space allocation," Omega, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:jomega:v:102:y:2021:i:c:s0305048321000347
    DOI: 10.1016/j.omega.2021.102425
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    Cited by:

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    3. Hense, Jonas & Hübner, Alexander, 2022. "Assortment optimization in omni-channel retailing," European Journal of Operational Research, Elsevier, vol. 301(1), pages 124-140.
    4. Lanza, Giacomo & Passacantando, Mauro & Scutellà, Maria Grazia, 2022. "Assigning and sequencing storage locations under a two level storage policy: Optimization model and matheuristic approaches," Omega, Elsevier, vol. 108(C).
    5. Schäfer, Fabian & Hense, Jonas & Hübner, Alexander, 2023. "An analytical assessment of demand effects in omni-channel assortment planning," Omega, Elsevier, vol. 115(C).
    6. Abdelaziz, Fouad Ben & Maddah, Bacel & Flamand, Tülay & Azar, Jimmy, 2024. "Store-Wide space planning balancing impulse and convenience," European Journal of Operational Research, Elsevier, vol. 312(1), pages 211-226.

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