A study on shelf space allocation and management

Yang, Ming‐Hsien; Chen, Wen-Cher

doi:10.1016/s0925-5273(98)00134-0

Cited by 115 publications

(73 citation statements)

References 9 publications

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“…Furthermore, the indirect effect of the layout on sales through marketing effect parameters is not considered. Yang and Chen (1999) use a simplified version of the integer programming model of Corstjens and Doyle (1981), whereas Yang (2001) uses the knapsack algorithm. Lim et al (2004) build on this work by optimizing profits with two metaheuristic approaches: Tabu Search and the so-called Squeaky Wheel Optimization.…”

Section: Literaturementioning

confidence: 99%

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Interaction Between Shelf Layout and Marketing Effectiveness and Its Impact on Optimizing Shelf Arrangements

Nierop¹,

Fok

Franses

2008

Marketing Science

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I n this paper, we propose and operationalize a new method for optimizing shelf arrangements. We show that there are important dependencies between the layout of the shelf and stock-keeping unit (SKU) sales and marketing effectiveness. The importance of these dependencies is further shown by the substantive profit gains we obtain with our proposed shelf optimization approach. The basis of our model is a standard sales equation that explains sales using item-specific marketing effect parameters and intercepts. In a Hierarchical Bayes (HB) fashion, we augment this model with a second layer that relates the effect parameters to shelf and SKU descriptors. We also take into account potential endogeneity of facings. After estimating the parameters of the two-level model using Bayesian methodology, we carefully investigate the dependencies of SKU sales and SKU marketing effectiveness on the shelf layout. Next, we search for the shelf arrangement that maximizes the expected total profit using simulated annealing (SA). We appear to be able to increase profits for all the stores analyzed, and our approach appears to outperform well-known rules of thumb.

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Section: Literaturementioning

confidence: 99%

“…In other words, these coefficients give the direct effect of the shelf layout on sales. Note that the current literature usually restricts the analysis to only these effects (Corstjens and Doyle 1981, Yang and Chen 1999, Yang 2001, Lim et al 2004. Also, most papers only use facings as a shelf layout descriptor.…”

Section: Representation Of the Sales Modelmentioning

confidence: 99%

Interaction Between Shelf Layout and Marketing Effectiveness and Its Impact on Optimizing Shelf Arrangements

Nierop¹,

Fok

Franses

2008

Marketing Science

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“…Substitution effects are integrated and the model is solved with a simulated annealing heuristic for six items. Yang and Chen (1999) assumes a linear space elasticity function and solves the model through a multi-knapsack heuristic. Urban (1998) provides the first enhancement with available inventory and replenishment systems.…”

Section: Related Literature On Shelf-space Optimizationmentioning

confidence: 99%

Effect of replenishment and backroom on retail shelf-space planning

Hübner

Schaal

2017

Bus Res

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Shelf-space optimization models support retailers in making optimal shelf-space decisions. They determine the number of facings for each item included in an assortment. One common characteristic of these models is that they do not account for in-store replenishment processes. However, the two areas of shelf-space planning and in-store replenishment are strongly interrelated. Keeping more shelf stock of an item increases the demand for it due to higher visibility, permits decreased replenishment frequencies and increases inventory holding costs. However, because space is limited, it also requires the reduction of shelf space for other items, which then deplete faster and must be reordered and replenished more often. Furthermore, the possibility of keeping stock of certain items in the backroom instead of the showroom allows for more showroom shelf space for other items, but also generates additional replenishment costs for the items kept in the backroom. The joint optimization of both shelf-space decisions and replenishment processes has not been sufficiently addressed in the existing literature. To quantify the cost associated with the relevant in-store replenishment processes, we conducted a time and motion study for a German grocery retailer. Based on these insights, we propose an optimization model that addresses the mutual dependence of shelf-space decisions and replenishment processes. The model optimizes retail profits by determining the optimum number of facings, the optimum display orientation of items, and the optimum order frequencies, while accounting for space-elasticity effects as well as limited shelf and backroom space. Applying our model to the grocery retailer's canned foods category, we found a profit potential of about 29%. We further apply our model to randomly generated data and show that it can be solved to optimality within very short run times, even for large-scale problem instances. 123Business Research (2017) 10:123-156 DOI 10.1007 replenishment cost on retail profits and solution structures. Based on the insights gained from the application of our model, the grocery retailer has decided to change its current approach to shelf-space decisions and in-store replenishment planning.

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“…Space use and space planning as recognised by Yang and Chen [10] as areas that can be further improved. Space utilisation rates have not significantly improved over the last decade across the sector as a whole, and space management measures are not always particularly effective.…”

Section: Space Managementmentioning

confidence: 99%

Perception Study on Workspace for Government Office in Malaysia

Zawawi

Kamaruzzaman

Dahari

et al. 2014

MATEC Web of Conferences

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Abstract. Nowadays, office workspaces consist of four (4) different generations; Veterans, Boomers, X-ers and Millenial, which different generation have different preferences. It is essential as Facilities Management Manager to understand the effects of the workspace design satisfactions on the generational of office employee and to improve the office working spaces. This research is focused only for government offices building in Selangor which consisted of ten (10) departments. This study aims to investigate the office workspace configuration that has been implemented in government offices as this influence the satisfaction of the employee and the organisation as a whole a long with creating better office workspace in reaching suitable office workspace. The study is a cross-sectional survey that used self-administered structured questionnaire to the target population of employees. Out of the one hundred and ninety (190) questionnaire administered, one hundred and eighty six (186) questionnaire were obtained constituting 98% for analysis. Non-parametric of SPSS approach was used to analyse data such as cumulative percentage of Demographic variables, percentage of the elements of workspace design (usability, flexibility, controllability and suitability), the level of employee's satisfaction and the mean rank of the preference of crucial choices in creating better office workspace (Location, Use, Layout, Appearance, Support Spaces and Standardisation). The study develops understanding of which elements of satisfactions of workspace design and the crucial choices in creating better office workspace in providing satisfying design features. The study thereby provides advice for facility management decision making.

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A study on shelf space allocation and management

Cited by 115 publications

References 9 publications

Interaction Between Shelf Layout and Marketing Effectiveness and Its Impact on Optimizing Shelf Arrangements

Interaction Between Shelf Layout and Marketing Effectiveness and Its Impact on Optimizing Shelf Arrangements

Effect of replenishment and backroom on retail shelf-space planning

Perception Study on Workspace for Government Office in Malaysia

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