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

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  • Hasmukh Gajjar
  • Gajendra Adil

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

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  • Hasmukh Gajjar & Gajendra Adil, 2010. "A piecewise linearization for retail shelf space allocation problem and a local search heuristic," Annals of Operations Research, Springer, vol. 179(1), pages 149-167, September.
    • Handle: RePEc:spr:annopr:v:179:y:2010:i:1:p:149-167:10.1007/s10479-008-0455-6
    DOI: 10.1007/s10479-008-0455-6
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    References listed on IDEAS

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    Cited by:

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    2. Moon, Ilkyeong & Park, Kun Soo & Hao, Jing & Kim, Dongwook, 2017. "Joint decisions on product line selection, purchasing, and pricing," European Journal of Operational Research, Elsevier, vol. 262(1), pages 207-216.
    3. Bianchi-Aguiar, Teresa & Hübner, Alexander & Carravilla, Maria Antónia & Oliveira, José Fernando, 2021. "Retail shelf space planning problems: A comprehensive review and classification framework," European Journal of Operational Research, Elsevier, vol. 289(1), pages 1-16.
    4. Kateryna Czerniachowska & Krzysztof Michalak & Marcin Hernes, 2023. "Heuristics for the shelf space allocation problem," OPSEARCH, Springer;Operational Research Society of India, vol. 60(2), pages 835-869, June.
    5. Flamand, Tulay & Ghoniem, Ahmed & Haouari, Mohamed & Maddah, Bacel, 2018. "Integrated assortment planning and store-wide shelf space allocation: An optimization-based approach," Omega, Elsevier, vol. 81(C), pages 134-149.
    6. Kim, Gwang & Moon, Ilkyeong, 2021. "Integrated planning for product selection, shelf-space allocation, and replenishment decision with elasticity and positioning effects," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    7. Teresa Bianchi-Aguiar & Elsa Silva & Luis Guimarães & Maria Antónia Carravilla & José F. Oliveira & João Günther Amaral & Jorge Liz & Sérgio Lapela, 2016. "Using Analytics to Enhance a Food Retailer’s Shelf-Space Management," Interfaces, INFORMS, vol. 46(5), pages 424-444, October.
    8. Tsao, Yu-Chung & Lu, Jye-Chyi & An, Na & Al-Khayyal, Faiz & Lu, Richard W. & Han, Guanghua, 2014. "Retailer shelf-space management with trade allowance: A Stackelberg game between retailer and manufacturers," International Journal of Production Economics, Elsevier, vol. 148(C), pages 133-144.
    9. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    10. Schaal, Kai & Hübner, Alexander, 2018. "When does cross-space elasticity matter in shelf-space planning? A decision analytics approach," Omega, Elsevier, vol. 80(C), pages 135-152.

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