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A fuzzy goal programming approach for mid-term assortment planning in supermarkets

Author

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  • Lotfi, M.M.
  • Torabi, S.A.

Abstract

We develop a fuzzy mixed integer non-linear goal programming model for the mid-term assortment planning of supermarkets in which three conflicting objectives namely profitability, customer service, and space utilization are incorporated. The items and brands in a supermarket compete to obtain more space and better shelf level. This model offers different service levels to loyal and disloyal customers, applies joint replenishment policy, and accounts for the holding time limitation of perishable items. We propose a fuzzy approach due to the imprecise nature of the goals' target levels and priorities as well as critical data. A heuristic method inspiring by the problem-specific rules is developed to solve this complex model approximately within a reasonable time. Finally, the proposed approach is validated through several numerical examples and results are reported.

Suggested Citation

  • Lotfi, M.M. & Torabi, S.A., 2011. "A fuzzy goal programming approach for mid-term assortment planning in supermarkets," European Journal of Operational Research, Elsevier, vol. 213(2), pages 430-441, September.
  • Handle: RePEc:eee:ejores:v:213:y:2011:i:2:p:430-441
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    References listed on IDEAS

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    2. Akoz, Onur & Petrovic, Dobrila, 2007. "A fuzzy goal programming method with imprecise goal hierarchy," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1427-1433, September.
    3. Hansen, Jared M. & Raut, Sumit & Swami, Sanjeev, 2010. "Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic Approaches," Journal of Retailing, Elsevier, vol. 86(1), pages 94-105.
    4. Reyes, Pedro M. & Frazier, Gregory V., 2007. "Goal programming model for grocery shelf space allocation," European Journal of Operational Research, Elsevier, vol. 181(2), pages 634-644, September.
    5. Hariga, Moncer A. & Al-Ahmari, Abdulrahman & Mohamed, Abdel-Rahman A., 2007. "A joint optimisation model for inventory replenishment, product assortment, shelf space and display area allocation decisions," European Journal of Operational Research, Elsevier, vol. 181(1), pages 239-251, August.
    6. Romero, Carlos, 2004. "A general structure of achievement function for a goal programming model," European Journal of Operational Research, Elsevier, vol. 153(3), pages 675-686, March.
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    10. van Donselaar, K. & van Woensel, T. & Broekmeulen, R. & Fransoo, J., 2006. "Inventory control of perishables in supermarkets," International Journal of Production Economics, Elsevier, vol. 104(2), pages 462-472, December.
    11. Hwang, Hark & Choi, Bum & Lee, Min-Jin, 2005. "A model for shelf space allocation and inventory control considering location and inventory level effects on demand," International Journal of Production Economics, Elsevier, vol. 97(2), pages 185-195, August.
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    Cited by:

    1. Cinzia Colapinto & Raja Jayaraman & Simone Marsiglio, 2017. "Multi-criteria decision analysis with goal programming in engineering, management and social sciences: a state-of-the art review," Annals of Operations Research, Springer, vol. 251(1), pages 7-40, April.
    2. 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.
    3. Alireza Azimian & Belaid Aouni, 2017. "Supply chain management through the stochastic goal programming model," Annals of Operations Research, Springer, vol. 251(1), pages 351-365, April.
    4. Irion, Jens & Lu, Jye-Chyi & Al-Khayyal, Faiz & Tsao, Yu-Chung, 2012. "A piecewise linearization framework for retail shelf space management models," European Journal of Operational Research, Elsevier, vol. 222(1), pages 122-136.
    5. 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.

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