A retail category management model integrating shelf space and inventory levels

A retail category management model that considers the interplay of optimal product assortment decisions, space allocation and inventory quantities is presented in this paper. Specifically, the proposed model maximizes the total net profit in terms of decision variables expressing product assortment,...

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Bibliographic Details
Main Authors: Ramaseshan, Balasubramanian, Achuthan, Narasimaha, Collinson, Roger
Format: Journal Article
Published: ORSS 2009
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/14739
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author Ramaseshan, Balasubramanian
Achuthan, Narasimaha
Collinson, Roger
author_facet Ramaseshan, Balasubramanian
Achuthan, Narasimaha
Collinson, Roger
author_sort Ramaseshan, Balasubramanian
building Curtin Institutional Repository
collection Online Access
description A retail category management model that considers the interplay of optimal product assortment decisions, space allocation and inventory quantities is presented in this paper. Specifically, the proposed model maximizes the total net profit in terms of decision variables expressing product assortment, shelf space allocation and common review period. The model takes into consideration several constraints such as the available shelf space, backroom inventory space, retailer's financial resources, and estimates of rate of demand for products based on shelf space allocation and competing products. The review period can take any values greater than zero. Results of the proposed model were compared withthe results of the current industry practice for randomly generated product assortments of size six, ten and fourteen. The model also outperformed the literature benchmark. The paper demonstrates that the optimal common review period is flexible enough to accommodate the administrative restrictions of delivery schedules for products, without significantly deviating from the optimal solution.
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format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T07:09:16Z
publishDate 2009
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spelling curtin-20.500.11937-147392019-02-19T05:34:54Z A retail category management model integrating shelf space and inventory levels Ramaseshan, Balasubramanian Achuthan, Narasimaha Collinson, Roger Category management product assortments optimal shelf space allocation A retail category management model that considers the interplay of optimal product assortment decisions, space allocation and inventory quantities is presented in this paper. Specifically, the proposed model maximizes the total net profit in terms of decision variables expressing product assortment, shelf space allocation and common review period. The model takes into consideration several constraints such as the available shelf space, backroom inventory space, retailer's financial resources, and estimates of rate of demand for products based on shelf space allocation and competing products. The review period can take any values greater than zero. Results of the proposed model were compared withthe results of the current industry practice for randomly generated product assortments of size six, ten and fourteen. The model also outperformed the literature benchmark. The paper demonstrates that the optimal common review period is flexible enough to accommodate the administrative restrictions of delivery schedules for products, without significantly deviating from the optimal solution. 2009 Journal Article http://hdl.handle.net/20.500.11937/14739 10.1142/S0217595909002304 ORSS fulltext
spellingShingle Category management
product assortments
optimal shelf space allocation
Ramaseshan, Balasubramanian
Achuthan, Narasimaha
Collinson, Roger
A retail category management model integrating shelf space and inventory levels
title A retail category management model integrating shelf space and inventory levels
title_full A retail category management model integrating shelf space and inventory levels
title_fullStr A retail category management model integrating shelf space and inventory levels
title_full_unstemmed A retail category management model integrating shelf space and inventory levels
title_short A retail category management model integrating shelf space and inventory levels
title_sort retail category management model integrating shelf space and inventory levels
topic Category management
product assortments
optimal shelf space allocation
url http://hdl.handle.net/20.500.11937/14739