A model and case study for efficient shelf usage and assortment analysis
Date
2010
Authors
Fadıloğlu, M. M.
Karaşan, O. E.
Pinar, M. C.
Editor(s)
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Annals of Operations Research
Print ISSN
0254-5330
Electronic ISSN
1572-9338
Publisher
Springer
Volume
180
Issue
1
Pages
105 - 124
Language
English
Type
Journal Title
Journal ISSN
Volume Title
Series
Abstract
In the rapidly changing environment of Fast Moving Consumer Goods sector where new product launches are frequent, retail channels need to reallocate their shelf spaces intelligently while keeping up their total profit margins, and to simultaneously avoid product pollution. In this paper we propose an optimization model which yields the optimal product mix on the shelf in terms of profitability, and thus helps the retailers to use their shelves more effectively. The model is applied to the shampoo product class at two regional supermarket chains. The results reveal not only a computationally viable model, but also substantial potential increases in the profitability after the reorganization of the product list.