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Modeling supermarket re-layout from the owner’s perspective

Author

Listed:
  • Péter Boros

    (Corvinus University
    COOP)

  • Orsolya Fehér

    (Corvinus University)

  • Zoltán Lakner

    (Corvinus University)

  • Sadegh Niroomand

    (Firouzabad Institute of Higher Education)

  • Béla Vizvári

    (Eastern Mediterranean University)

Abstract

It is well-known that if a customer follows a longer path while shopping then the expected value of his/her purchased amount is increased; therefore the sale amount of the supermarket can be increased. This study deals with a new problem: how to re-layout a supermarket the impulsive purchases of the average customer are maximized. Supermarket is a shop of limited size and is definitely smaller than the hypermarket. It is assumed that it is located in a living area and customers know its layout well. In many countries, there are plenty of shops like that. In a case study 27 clusters of customers are defined based on 13,300 real buying. To assume that actors behave in a rational way, is traditional in analysis of economic problems. Rationality means in that case that customers choose the shortest possible path according to their a priori purchase plan. Thus, traveling salesman problem (TSP) can be used to simulate the customer’s shopping path. Dantzig–Fulkerson–Johnson formulation of TSP is used to maximize the shortest traveled path of each customer type by rearranging the items of the supermarket as a max–min problem. The computational experiences on the case study show that the total distance is increased in the new layout proposed by the model.

Suggested Citation

  • Péter Boros & Orsolya Fehér & Zoltán Lakner & Sadegh Niroomand & Béla Vizvári, 2016. "Modeling supermarket re-layout from the owner’s perspective," Annals of Operations Research, Springer, vol. 238(1), pages 27-40, March.
    • Handle: RePEc:spr:annopr:v:238:y:2016:i:1:d:10.1007_s10479-015-1986-2
    DOI: 10.1007/s10479-015-1986-2
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    References listed on IDEAS

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    1. G. Dantzig & R. Fulkerson & S. Johnson, 1954. "Solution of a Large-Scale Traveling-Salesman Problem," Operations Research, INFORMS, vol. 2(4), pages 393-410, November.
    2. Erjen van Nierop & Dennis Fok & Philip Hans Franses, 2008. "Interaction Between Shelf Layout and Marketing Effectiveness and Its Impact on Optimizing Shelf Arrangements," Marketing Science, INFORMS, vol. 27(6), pages 1065-1082, 11-12.
    3. Sam K. Hui & Peter S. Fader & Eric T. Bradlow, 2009. "—The Traveling Salesman Goes Shopping: The Systematic Deviations of Grocery Paths from TSP Optimality," Marketing Science, INFORMS, vol. 28(3), pages 566-572, 05-06.
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    Cited by:

    1. Ramazan Şahin & Sadegh Niroomand & Esra Duygu Durmaz & Saber Molla-Alizadeh-Zavardehi, 2020. "Mathematical formulation and hybrid meta-heuristic solution approaches for dynamic single row facility layout problem," Annals of Operations Research, Springer, vol. 295(1), pages 313-336, December.
    2. Mojtaba Akbari & Saber Molla-Alizadeh-Zavardehi & Sadegh Niroomand, 2020. "Meta-heuristic approaches for fixed-charge solid transportation problem in two-stage supply chain network," Operational Research, Springer, vol. 20(1), pages 447-471, March.
    3. Yi Sun & Teruaki Hayashi & Yukio Ohsawa, 2021. "A Latent Topic Analysis and Visualization Framework for Category-Level Target Promotion in the Supermarket," The Review of Socionetwork Strategies, Springer, vol. 15(2), pages 429-453, November.

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