Estimation of product category sales responsiveness to allocated shelf space

Desmet, Pierre; Renaudin, Valérie

doi:10.1016/s0167-8116(98)00018-4

Cited by 135 publications

(93 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Empirical studies examine these so-called ''spaceelasticity effects '', (cf. e.g., Cox 1964;Frank and Massy 1970;Curhan 1972;Drèze et al 1994;Desmet and Renaudin 1998). Chandon et al (2009) show that the Fig.…”

Section: Conceptual Background and Decision Problemmentioning

confidence: 99%

Effect of replenishment and backroom on retail shelf-space planning

Hübner

Schaal

2017

Bus Res

View full text Add to dashboard Cite

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.

show abstract

Section: Conceptual Background and Decision Problemmentioning

confidence: 99%

Effect of replenishment and backroom on retail shelf-space planning

Hübner

Schaal

2017

Bus Res

View full text Add to dashboard Cite

show abstract

“…The data we use are obtained from physical retail stores, which have been applied in Wang and Li [8] and Desmet and Renaudin [18]. To satisfy the assumptions well in Section 4, two kinds of perishable …”

Section: Real-life Examplesmentioning

confidence: 99%

The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation

Xiao

Yang

2016

Sustainability

View full text Add to dashboard Cite

Abstract:Managing perishable food in a retail store is quite difficult because of the product's short lifetime and deterioration. Many elements, such as price, shelf space allocation, and quality, which can affect the consumption rate, should be taken into account when the perishable food retail chain is designed. The modern tracking technologies provide good opportunities to improve the management of the perishable food retail chain. In this research, we develop a mathematical model for a single-item retail chain and determine the pricing strategy, shelf space allocation, and order quantity to maximize the retailer's total profit with the application of tracking technologies. Then the single-item retail chain is extended into a multi-item one with a shelf space capacity and a simple algorithm is developed to find the optimal allocation of shelf space among these items. Finally, numerical experiments and real-life examples are conducted to illustrate the proposed models.

show abstract

“…The function principle was introduced by Chen [6] to treat fuzzy arithmetical operations. This principle is used for the operation for addition, subtraction, multiplication and division of fuzzy numbers.…”

Section: The Function Principlementioning

confidence: 99%

“…Shelf-space allocation models were developed to exploit this relationship by marketing researchers and professionals like Borin et al, (1994), Corstjens and Doyle(1981), Urban (1998), Yang and Chen(1999), Zufryden(1986). Desmet and Renaudin (1998) studied on space-sales relationship and aimed that most estimates of space elasticity vary between 0.15 and 0.8. It may seem that more inventory will result in more holding cost.…”

Section: Introductionmentioning

confidence: 99%

Fuzzy Technique for an Inventory Model with Auto-Correlated Demand

Parvathi¹,

Sujatha²

2013

IJCA

View full text Add to dashboard Cite

It is commonly observed that the demand rates of many consumer goods are auto correlated and are dependent on the price and inventory amount. It is believed that the distribution of demand is independent from time to time. But in real life the demand of goods is auto-correlated. The effects of dependency and auto-correlated demand are studied under a periodic review model. An adaptive order-up-to policy based on the critical fractile is presented and a solution procedure is given. Finally we solve the model by general fuzzy technique. The results and comparative discussions are illustrated numerically.

show abstract

Estimation of product category sales responsiveness to allocated shelf space

Cited by 135 publications

References 19 publications

Effect of replenishment and backroom on retail shelf-space planning

Effect of replenishment and backroom on retail shelf-space planning

The Retail Chain Design for Perishable Food: The Case of Price Strategy and Shelf Space Allocation

Fuzzy Technique for an Inventory Model with Auto-Correlated Demand

Contact Info

Product

Resources

About