An Analysis of Retail Display Space: Theory and Methods

Anderson, Evan E.

doi:10.1086/296036

Cited by 57 publications

(34 citation statements)

References 8 publications

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“…Early studies in space management concentrated on establishing whether a relationship exists between the space allocated to an item and that item's sales [8] In Anderson's [1] work, space allocation decisions were based on marginal analysis of a logistic function modeling the relationship between a product's share of space and its market share. Brand loyal or nonswitchers were identified as those consumers whose purchases are not influenced by item shelf space.…”

Section: Review Of the Literaturementioning

confidence: 99%

A Model for Determining Retail Product Category Assortment and Shelf Space Allocation

Borin¹,

Farris²,

Freeland³

1994

Decision Sciences

175

103

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We develop a category management model to aid retailers in the space constrained decisions of which products to stock (assortment) and how much shelf space to allocate to those products. The model is formulated as a constrained optimization problem with two basic decision variables: assortment and allocation of space to the items in the assortment. The non-linearities in the objective function and the zero-one decision variables disallow a closed form solution. We develop a heuristic solution procedure based on simulated annealing and test it on a problem with a known optimum. We also apply the technique to a larger problem without a known optimum. Finally, the solution found by simulated annealing is compared against a solution produced using a shelf allocation rule based on share of sales.

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Section: Review Of the Literaturementioning

confidence: 99%

A Model for Determining Retail Product Category Assortment and Shelf Space Allocation

Borin¹,

Farris²,

Freeland³

1994

Decision Sciences

175

103

View full text Add to dashboard Cite

show abstract

“…If consumers were completely brand loyal and the product was always available, the space allocated to an item would have no effect on its sales (Anderson, 1979). Individuals would purchase the preferred item if it is present and either delay the purchase or go to another location if it is not available.…”

Section: Literature Review Shelf Management Models and Studies Of Shementioning

confidence: 99%

“…Typically, shelf-space models hypothesize that the ratio of sales/space decreases as space increases (Anderson, 1979;Brown and Tucker, 1961;Bultez and Naert, 1988;Bultez et al, 1989;Cairns 1962;Doyle, 1981,1983;Curhan, 1972Curhan, , 1973Hansen and Heinsbroek, 1979). The non-linearities in these models lead many of the authors to make simplifying assumptions in order to find a solution set.…”

Section: Shelf-space Studies and Modelsmentioning

confidence: 99%

“…Current shelf management models focus on space responsiveness and neglect issues of assortment and stockouts (Anderson, 1979;Hansen and Heinsbroek, 1979;Doyle, 1981, 1983;Zufryden, 1986;Bultez and Naert, 1988;Bultez et al, 1989). The existing models allocate shelf space using only space elasticities, which have been shown to be weak.…”

Section: Implications Of Current Research In Space and Assortment Effmentioning

confidence: 99%

“…Many retailers are now turning to shelf management models to help with these decisions. Within the last fifteen years there have been a number of models developed which incorporate some or all of these objectives (Anderson, 1979;Hansen and Heinsbroek, 1979;Doyle, 1981, 1983;Bultez and Naert, 1988;Bultez, Naert, Cijsbrechts and Vanden Abelle, 1989). However, these models suffer from two important problems, which often limit their effectiveness.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

A sensitivity analysis of retailer shelf management models

Borin

Farris

1995

Journal of Retailing

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Category and Inventory Management

Alan

Gaur

2011

Wiley Encyclopedia of Operations Research and Management Science

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Category and inventory management in retailing involves many novel and challenging aspects, including shelf space allocation, effect of inventory on stimulating demand, retail competition, substitution, and transshipment. Suitably managing these aspects has required new modeling advancements in the operations research and management science literature with the potential for a large improvement in the profitability of retailers. In this introductory article, we describe the main characteristics of these models, focusing on the principles involved, the insights from optimization, and techniques or heuristics used in practice.

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An Analysis of Retail Display Space: Theory and Methods

Cited by 57 publications

References 8 publications

A Model for Determining Retail Product Category Assortment and Shelf Space Allocation

A Model for Determining Retail Product Category Assortment and Shelf Space Allocation

A sensitivity analysis of retailer shelf management models

Category and Inventory Management

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