Shelf Space Allocation Problem Using LNS Solver

Abstract

Shelf Space Allocation Problem is the problem of finding a good or an optimal solution for arranging objects on shelves in a store/warehouse to maximize profit. The SSAP yet remains a topic under research and has recently only been applied on a commercial level by large warehouses and the generalization of the problem to meet different requirements is still under investigation by the researchers. The problem considers different shelves with different priorities based on customer experience studies or based on certain criteria defined by the warehouse manager, while products have different dimensions and different profit margin. The current study is an item independent, thus it applies to supermarkets, parts warehouses, or any other space allocation problems with similar distribution criteria. Our study will focus on a simplified version of space allocation problem where we will ignore depth and stacking of same product on shelves, and not consider any clustering or aggregations beyond the fact that all items of same type are allocated within the same shelf next to each other. Our implementation will utilize an LNS solver, and present a planogram in motion, showing the arrangement of products on shelves in a video like sequence to watch the solution improvement and establish a basis for future improvements and generalization of the problem