Solving the grocery backroom sizing problem

Pires, Maria João; Camanho, Ana S.; Amorim, Pedro

doi:10.1080/00207543.2019.1656840

Cited by 11 publications

(7 citation statements)

References 31 publications

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“…After a delivery from the DC, products are placed in front of the shelves and shelf-filling operations are then carried out by dedicated shelf refillers, mostly before opening hours (Hübner and Schaal 2017a;. If the shelf space for an item is insufficient for accommodating all the products delivered, they must be carried to the backroom, often on pallets or in-store roll cages, stored in the backroom and restocked later when free shelf space becomes available after consumer purchases (Eroglu et al 2013;Pires et al 2020;Reiner et al 2012;Sternbeck 2015). In this process environment, the process of refilling the shelf from the backroom area has to be organized.…”

Section: Instore Replenishment Planningmentioning

confidence: 99%

“…Retailers therefore limit the number of products eligible for ad-hoc replenishment so that not too many replenishments occur between two regular replenishment periods. Store employees should not be overloaded with refill operations so that "phantom products" are avoided as much as possible, i.e., situations where products are available in backroom storage but not on the shelf and hence are not visible for customers (DeHoratius and Zeynep 2015; Pires et al 2020). In addition, REWE (for example) marks certain products with black labels on the shelves, signaling to employees that these products should be continuously replenished from the backroom as needed.…”

Section: Instore Replenishment Planningmentioning

confidence: 99%

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Decision support for managing assortments, shelf space, and replenishment in retail

Hübner

Kühn

2023

Flex Serv Manuf J

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Efficiently managing retail space is critical as the increase in product variety is in conflict with limited shelf space and instore replenishment constraints. This paper develops a general framework for retail space management and presents a decision support model with the related problems within the framework of optimizing assortment, shelf space assignment and replenishment. An integrative approach to these planning problems becomes particularly relevant for fast-moving consumer goods and groceries, where stores are regularly replenished from distribution centers. The planning problem at hand is a multi-product shelf space allocation problem where demand is a composite function of the shelf space allocated and assortment-related demand substitution, and actual replenishment practices from retail are incorporated. The model developed extends existing models of shelf space management by jointly considering space-elastic demand and assortment-based substitution and integrating restocking constraints. For the latter, we consider real-world replenishment processes of retailers that distinguish between period-based and ad-hoc replenishment from the backroom. We develop three solution approaches that are based on efficient pre-processing and a nonlinear binary integer programming formulation of the problem. The computation tests based on retail data show the efficiency of the solution approaches in terms of computation time and solution quality. We reveal the improvement in profit levels that can be achieved from integrating assortments, shelf space planning and replenishment where challenges arise in obtaining feasible solutions with limited shelf space and replenishment constraints. We also use sensitivity analyses to demonstrate the high impact of replenishment constraints on profits and solution structures.

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Section: Instore Replenishment Planningmentioning

confidence: 99%

Section: Instore Replenishment Planningmentioning

confidence: 99%

Decision support for managing assortments, shelf space, and replenishment in retail

Hübner

Kühn

2023

Flex Serv Manuf J

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“…The authors of [57] suggested that the backroom was the most important part of retail, so they focused on optimizing the distribution center and sales spaces of a store. They proposed a solution for the problem of grocery backroom sizing to reduce floor space, which may result in higher revenues and/or lower backroom-associated costs.…”

Section: Related Workmentioning

confidence: 99%

“…However, the PrefixSpan's long pattern length is a limitation. Researchers have expressed interest in prefix algorithms and their improvements [46,[56][57][58][59]. The study of [59] is relevant to this paper from an application standpoint, as it revealed that shelf layout affects the display of available food items, information that could be useful in mobile applications.…”

Section: Related Workmentioning

confidence: 99%

Multi-Objective Design of Profit Volumes and Closeness Ratings Using MBHS Optimizing Based on the PrefixSpan Mining Approach (PSMA) for Product Layout in Supermarkets

Kaewyotha

Songpan

2021

Applied Sciences

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Product layout significantly impacts consumer demand for purchases in supermarkets. Product shelf renovation is a crucial process that can increase supermarket efficiency. The development of a sequential pattern mining algorithm for investigating the correlation patterns of product layouts, solving the numerous problems of shelf design, and the development of an algorithm that considers in-store purchase and shelf profit data with the goal of improving supermarket efficiency, and consequently profitability, were the goals of this research. The authors of this research developed two types of algorithms to enhance efficiency and reach the goals. The first was a PrefixSpan algorithm, which was used to optimize sequential pattern mining, known as the PrefixSpan mining approach. The second was a new multi-objective design that considered the objective functions of profit volumes and closeness rating using the mutation-based harmony search (MBHS) optimization algorithm, which was used to evaluate the performance of the first algorithm based on the PrefixSpan algorithm. The experimental results demonstrated that the PrefixSpan algorithm can determine correlation rules more efficiently and accurately ascertain correlation rules better than any other algorithms used in the study. Additionally, the authors found that MBHS with a new multi-objective design can effectively find the product layout in supermarket solutions. Finally, the proposed product layout algorithm was found to lead to higher profit volumes and closeness ratings than traditional shelf layouts, as well as to be more efficient than other algorithms.

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“…This study is one of the first quantitative and efficiency-based papers dedicated to computer system disruptions on operational processes in warehouse logistics, for example, regarding software or hardware failures, electricity blackouts and hacking incidents, including ransomware. This approach relates to two perspectives regarding the effect of computer system disruptions on warehouse logistics for retailing [18], which connects to the field of industrial ecology and economic sustainability in closed-loop concepts for supply chain management. From a static process point of view, the first research question (RQ 1 ) is: What is the impact of a supply chain computer system disruption in the first sub-process on the subsequent sub-process in a supply chain and vice versa, and how does this affect the efficiency of the entire warehouse system?…”

Section: Introductionmentioning

confidence: 99%

Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency

Klumpp

Loske

2021

Sustainability

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The increasing use of information technology (IT) in supply chain management and logistics is connected to corporate advantages and enhanced competitiveness provided by enterprise resource planning systems and warehouse management systems. One downside of advancing digitalization is an increasing dependence on IT systems and the negative effects of technology disruption impacts on firm performance, measured by logistics efficiency, e.g., with data envelopment analysis (DEA). While the traditional DEA model cannot deconstruct production processes to find the underlying causes of inefficiencies, network DEA (NDEA) can provide insights into resource allocation at the individual stages of operations. We apply an NDEA approach to measure the impact of IT disruptions on the efficiency of operational processes in retail logistics. We compare efficiency levels during IT disruptions, as well as ripple effects throughout subsequent days. In the first stage, we evaluate the efficiency of order picking in retail logistics. After handing over the transport units to the outgoing goods department of a warehouse, we assess the subsequent process of truck loading as a second stage. The obtained results underline the analytical power of NDEA models and demonstrate that the proposed model can evaluate IT disruptions in supply chains better than traditional approaches. Insights show that efficiency reductions after IT disruptions occur at different levels and for diverse reasons, and successful preparation and contingency management can support improvements.

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Solving the grocery backroom sizing problem

Cited by 11 publications

References 31 publications

Decision support for managing assortments, shelf space, and replenishment in retail

Decision support for managing assortments, shelf space, and replenishment in retail

Multi-Objective Design of Profit Volumes and Closeness Ratings Using MBHS Optimizing Based on the PrefixSpan Mining Approach (PSMA) for Product Layout in Supermarkets

Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency

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