Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management

Omega

Volumn 40, Issue 2, 2012, Pages 199-209

  Hübner, Alexander H ^a   Kuhn, Heinrich ^a  

^a CATHOLIC UNIVERSITY OF EICHSTÄTT INGOLSTADT   (Germany)

Author keywords

Decision making process; Decision support systems; Information systems; Newsboy problem; Retail

Indexed keywords

APPLICATION PROGRAMS; ARTIFICIAL INTELLIGENCE; COSTS; DECISION MAKING; INFORMATION MANAGEMENT; INFORMATION SYSTEMS; SALES;

ASSORTMENT PLANNING; CATEGORY MANAGEMENT; CONSUMER CHOICE; DECISION-MAKING PROCESS; NEWSBOY PROBLEM; RETAIL; SOFTWARE APPLICATIONS; SPACE MANAGEMENT; STATE-OF-THE ART REVIEWS; SUBSTITUTION EFFECT;

DECISION SUPPORT SYSTEMS;

EID: 79960629543     PISSN: 03050483     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.omega.2011.05.008     Document Type: Article

References (109)

1. Abbott H., Palekar U.S. Retail replenishment models with display-space elastic demand. European Journal of Operational Research 2008, 186(2):586-607.
2. Agrawal N, Smith SA, editors. Retail supply chain management: quantitative models and empirical studies. International series in operations research and management science. Boston, MA: Springer; 2009.
3. Angerer A. The impact of automatic store replenishment on retail: technologies and concepts for the out-of-stocks problem 2006, Gabler, Wiesbaden.
4. Annupindi R, Dada M, Gupta S. A dynamic model of consumer demand with stock out based substitution. PhD thesis, Kellog School of Management, 1997.
5. Anupindi R., Gupta S., Venkatarmanan M.A. Managing variety on the retail shelf: using household scanner panel data to rationalize assortments. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
6. Aydin G., Porteu E.L. Manufacturer-to-retailer versus manufacturer-to-consumer rebates in a supply chain. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
7. Basuroy S., Mantrala M.K., Walters R.G. The impact of category management on retailer prices and performance: theory and evidence. Journal of Marketing 2001, 65(October):16-32.
8. Becker J., Uhr W., Vering O. Integrierte Informationssysteme in Handelsunternehmen auf der Basis von SAP 2000, Springer, Berlin.
9. Boatwright P., Nunes J.C. Reducing assortment: an attribute-based approach. Journal of Marketing 2001, 65:50-63.
10. Borin N., Farris P. A sensitivity analysis of retailer shelf management models. Journal of Retailing 1995, 71:153-171.
11. Borin N., Farris P., Freeland J. A model for determining retail product category assortment and shelf space allocation. Decision Sciences 1994, 25(3):359-384.
12. Breuer P., von Fritsch A., Prauschke C., Steegmann J. Auf der suche nach dem richtigen angebot: sortiment und kundenverständnis sind top-Themen im krisenjahr. Akzente 2009, 4(3):8-13.
13. Broekmeulen R, van Donselaar K, Fransoo J, van Woensel T. The opportunity of excess shelf space in grocery retail stores. Technical Report, 2006. p. 1-34.
14. Brown W.M., Tucker W.T. The marketing center: vanishing shelf space. Atlanta Economic Review 1961, 9:9-13.
15. Bultez A.P., Naert P., Gijsbrechts E., Abelle P.V. Asymmetric cannibalism in retail assortments. Journal of Retailing 1989, 65(2):153-192.
16. Cachon G., Terwiesch C., Xu Y. Retail assortment planning in the presence of consumer search. Manufacturing and Service Operations Management 2005, 7(4):330-346.
17. Campo K., Gijsbrechts E. Retail assortment, shelf and stockout management: issues, interplay and future challenges. Applied Stochastic Models in Business and Industry 2005, 21(4-5):383-392.
18. Campo K., Gijsbrechts E., Nisol P. The impact of retailer stockouts on whether, how much, and what to buy. International Journal of Research in Marketing 2003, 20(3):273-286.
19. Category management: 2003 benchmarking study 2003, Cannondale Associates, Cannondale Associates Inc., Evanston, IL.
20. Carlotti Jr S, Coe ME, Perrey J. Designing and managing winning brand portfolios: profiting from proliferation. McKinsey Quarterly, 2006.
21. Chandon P., Hutchinson W.J., Bradlow E.T., Young S.H. Does in-store marketing work? Effects of the number and position of shelf facings on brand attention and evaluation at the point of purchase. Journal of Marketing 2009, 73(November):1-17.
22. Corstjens M., Doyle P. A model for optimizing retail space allocations. Management Science 1981, 27(7):822-833.
23. Curhan R.C. The relationship between shelf space and unit sales in supermarkets. Journal of Marketing Research 1972, 9:406-412.
24. Curseu A., van Woensel T., Fransoo J., van Donselaar K., Broekmeulen R. Modelling handling operations in grocery retail stores: an empirical analysis. Journal of the Operational Research Society 2009, 60(2):200-214.
25. DeHoratius N., Ton Z. The role of execution in managing product availability. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
26. Desmet P., Renaudin V. Estimation of product category sales responsiveness to allocated shelf space. International Journal of Research in Marketing 1998, 15(5):443-457.
27. Dhar S.K., Hoch S.J., Kumar N. Effective category management depends on the role of the category. Journal of Retailing 2001, 77:165-184.
28. Drèze X., Hoch S.J., Purk M.E. Shelf management and space elasticity. Journal of Retailing 1994, 70(4):301-326.
29. ECR Europe. Optimal shelf availability: increasing shopper satisfaction at the moment of truth, URL 〈〉; 2003. http://www.ecrnet.org/04-publications/bluebooks/pub2003osabluebook.pdf.
30. EHI Retail Institute. Handel aktuell 2009/2010: struktur, kennzahlen und profile des internationalen handels-schwerpunkt deutschland. Österreich, Schweiz; 2010.
31. Federgruen A., Heching A. Combined pricing and inventory control under uncertainty. Operations Research 1999, 47:454-477.
32. Fisher M.L., Raman A. The new science of retailing: how analytics are transforming the supply chain and improving performance 2010, Harvard Business School Publishing, Boston.
33. Fitzsimons G.J. Consumer response to stockouts. Journal of Consumer Research 2000, 27:249-266.
34. Friend S.C., Walker P.H. Welcome to the new world of merchandising. Harvard Business Review 2001, (November):133-141.
35. Gajjar H.K., Adil G.K. A piecewise linearization for retail shelf space allocation problem and a local search heuristic. Annals of Operations Research 2008, 1-19.
36. Gajjar H.K., Adil G.K. Heuristics for retail shelf space allocation problem with linear profit. International Journal of Retail and Distribution Management 2011, 39(2):144-145.
37. Gaur V., Honhon D. Assortment planning and inventory decisions under a locational choice model. Management Science 2006, 52:1528-1543.
38. Greenhouse S. How Costco became the anti-Wal-Mart. New York Times, 2005.
39. Griswold M. Space management: align business challenges and IT vendors. AMR Research, 2007. p. 1-17.
40. Gruen WT, Corsten S, Bharadwaj S. Retail out-of-stocks: a worldwide examination of extent, causes and consumer responses: report. Grocery Manufacturers of America, Washington, DC; 2002.
41. Gutgeld Y., Sauer S., Wachinger T. Wachstum-aber wie?. Akzente 2009, 3(3):14-19.
42. Hansen J.M., Raut S., Swami S. Retail shelf allocation: a comparative analysis of heuristic and meta-heuristic approaches. Journal of Retailing 2010, 86(1):94-105.
43. Hansen P., Heinsbroek H. Product selection and space allocation in supermarkets. European Journal of Operational Research 1979, 3(6):474-484.
44. Hariga M.A., Al-Ahmari A., Mohamed A.-R.A. A joint optimisation model for inventory replenishment, product assortment, shelf space and display area allocation decisions. European Journal of Operational Research 2007, 181(1):239-251.
45. Helm R., Stölzle W. Optimal shelf availability: effiziente mmanagementkonzepte zur optimierung der regalverfügbarkeit 2009, Deutscher Fachverlag, Frankfurt am Main.
46. Helnerus K. Die lücke im regal: out-of-stock situationen aus sicht der kunden und des handelsmanagements 2009, Kohlhammer, Stuttgart.
47. Hoch S.J., Deighton J.A. Managing what consumers learn from experience. Journal of Marketing 1989, 53(2):1-20.
48. Hopp W., Xu X. A static approximation for dynamic demand substitution with applications in a competitive market. Operations Research 2008, 56:630-645.
49. Hoyer W.D. An examination of consumer decision making for a common repeat purchase product. Journal of Consumer Research 1984, 11(3):822-831.
50. Hübner A.H. Retail category management: decision support systems for assortment, shelf space and price planning. Lecture notes in economic and mathematical systems 2011, Springer, Heidelberg.
51. Hübner AH, Kuhn H. Integrative retail assortment, shelf space and price planning. Technical Report KU Eichstätt-Ingolstadt; 2011. p. 1-27.
52. Hübner AH, Kuhn H. Retail shelf space management model with space-elastic demand and consumer-driven substitution effects. Technical Report KU Eichstätt-Ingolstadt; 2011. p. 1-19, URL http://ssrn.com/abstract=1534665.
53. Hübner AH, Kuhn H. Shelf and inventory management with space-elastic demand. In: Hu B, Morasch K, Siegle M, Pickl S, editors. Operations research proceedings 2010. Berlin: Springer; 2011, in press.
54. Hübner AH, Kuhn H, Sternbeck MG. Demand and supply chan planning in grocery retail: an operations planning framework. Technical Report KU Eichstätt-Ingolstadt; 2010. p. 1-29, URL http://ssrn.com/abstract=1635752.
55. Hwang H., Choi B., Lee M.-J. A model for shelf space allocation and inventory control considering location and inventory level effects on demand. International Journal of Production Economics 2005, 97(2):185-195.
56. Hwang H., Hahn K.H. An optimal procurement policy for items with an inventory level-dependent demand rate and fixed lifetime. European Journal of Operational Research 2000, 127(3):537-545.
57. Inman J.J., Winter R.S., Ferraro R. The interplay among category characteristics, customer characteristics and customer activities on in-store decision making. Journal of Marketing 2009, 73(September):19-29.
58. Irion J, Al-Khayyal F, Lu J. A piecewise linearization framework for retail shelf space management models: working paper. Technical Report, 2004. p. 1-25.
59. Iyengar P., Lepper M. When choice is demotivating: can one desire too much of a good thing?. Journal of Personality and Social Psychology 2000, 79(6):995-1006.
60. Ketzenberg M., Metters R., Vargas V. Quantifying the benefits of breaking bulk in retail operations. International Journal of Production Economics 2002, 80(3):249-263.
61. Khouja M. The single-period (news-vendor) problem: literature review and suggestions for future research. Omega 1999, 27(5):537-553.
62. Kök GA. Management of product variety in retail operations. PhD dissertation, The Wharton School, University of Pennsylvania, Pennsylvania; 2003.
63. Kök G.A., Fisher M.L. Demand estimation and assortment optimization under substitution: methodology and application. Operations Research 2007, 55(6):1001-1021.
64. Kök G.A., Fisher M.L., Vaidyanathan R. Assortment planning: review of literature and industry practice. Retail supply chain management. International series in operations research and management science 2009, 99-154. Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
65. Kopalle P.K. Special issue: modeling retail phenomena. Journal of Retailing 2010, 86(2):117-124.
66. Koschat M.A. Store inventory can affect demand? Empirical evidence from magazine retailing. Journal of Retailing 2008, 84(2):165-179.
67. Kuhn H., Sternbeck M.G. Logistik im Lebensmittelhandel: Eine empirische Untersuchung zur Ausgestaltung handelsinterner Liefernetzwerke 2011, Forschungsbericht der Wirtschaftswissenschaftlichen Fakultät Ingolstadt, Ingolstadt.
68. Kurtulus M., Toktay B.L. Category captainship practices in the retail industry. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
69. Kurtulus M., Toktay B.L. Category captainship vs. retailer category management and limited retail shelf space. Production and Operations Management 2011, 20(1):47-56.
70. Lehnert M., Hüffner G. IT-gestütztes category-management: status quo und entwicklungstendenzen. Handbuch handel 2006, 943-962. Gabler, Wiesbaden. J. Zentes (Ed.).
71. Levy M., Grewal D., Kopalle P.K., Hess J.D. Emerging trends in retail pricing practice: implications for research. Journal of Retailing 2004, 80(3):xiii-xxi.
72. Li Z. A single-period assortment optimization model. Production and Operations Management 2007, 16(3):369-380.
73. Lim A., Rodrigues B., Zhang X. Metaheuristics with local search techniques for retail shelf-space optimization. Management Science 2004, 50(1):117-131.
74. Mahajan S., van Ryzin G. Stocking retail assortments under dynamic consumer substitution. Operations Research 2001, 49:334-351.
75. Mantrala M.K., Levy M., Kahn B.E., Fox E.J., Gaidarev P., Dankworth B., Shah D. Why is assortment planning so difficult for retailers? A framework and research agenda. Journal of Retailing 2009, 85(1):71-83.
76. Martín-Herrán G., Taboubi S., Zaccour G. The impact of manufacturesa' wholesale prices on a retailer's shelf-space and pricing decisions. Decision Sciences 2006, 37(1):71-90.
77. Martínez-de Albéniz V., Roels G. Competing for shelf space. Production and Operations Management 2011, 20(1):32-46.
78. McIntyre S.H., Miller C.M. The selection and pricing of retail assortments: an empirical approach. Journal of Retailing 1999, 75(3):295-318.
79. Miller C.M., Smith S.A., McIntyre S.H., Achabal D.D. Optimizing and evaluating retail assortments for infrequently purchased products: special issue: modeling retail phenomena. Journal of Retailing 2010, 86(2):159-171.
80. Minner S., Transchel S. Periodic review inventory-control for perishable products under service-level constraints. OR Spectrum 2010, 32(4):979-996.
81. Murray C.C., Talukdar D., Gosavi A. Joint optimization of product price, display orientation and shelf-space allocation in retail category management: special issue: modeling retail phenomena. Journal of Retailing 2010, 86(2):125-136.
82. Netessine S., Rudi N. Centralized and competitive inventory models with demand substitution. Operations Research 2003, 51(2):329-335.
83. Pentico D. The assortment problem: a survey. European Journal of Operational Research 2008, 190(2):295-309.
84. Rajaram K., Tang C.S. The impact of product substitution on retail merchandising. European Journal of Operational Research 2001, 135(3):582-601.
85. Ramaseshan B., Achuthan N.R., Collinson R. Decision support tool for retail shelf space optimization. International Journal of Information Technology and Decision Making 2008, 7(3):547-565.
86. Ramaseshan B., Achuthan N.R., Collinson R. A retail category management model integrating shelf space and inventory levels. Asia-Pacific Journal of Operational Research 2009, 26(4):457-478.
87. Retail Information Systems, Gartner, Oracle. 19th Annual retail technology study: innovate, execute, adapt. Edgell Communications, New Jersey; 2009.
88. Schramm-Klein H, Morschett D. Effektivitäts- und effizienzsteigerungenpotenziale durch IT im handel. In: Trommsdorff V, editor. Handelsforschung, Kohlhammer; 2004.
89. Shah J., Avittathur B. The retailer multi-item inventory problem with demand cannibalization and substitution: special section on contextualisation of supply chain networks: ninth international symposium in logistics. International Journal of Production Economics 2007, 106(1):104-114.
90. Sloot L.M., Verhoef P.C. The impact of brand delisting on store switching and brand switching intentions. Journal of Retailing 2008, 84(3):281-296.
91. Smith S.A. Clearance pricing in retail chains. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
92. Smith S.A. Optimizing retail assortments for diverse customer preferences. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston, MA. N. Agrawal, S.A. Smith (Eds.).
93. Smith S.A., Agrawal N. Management of multi-item retail inventory systems with demand substitution. Operations Research 2000, 48:50-64.
94. Sternbeck M., Kuhn H. Differenzierte Logistik durch ein segmentiertes Netzwerk im filialisierten Lebensmitteleinzelhandel. Dimensionen der logistik 2010, 1009-1038. Gabler, Wiesbaden. R. Schönberger, R. Elbert (Eds.).
95. Swami S., Eliashberg J., Weinberg C.B. SilverScreener: a modeling approach to movie screens management. Marketing Science 1999, 18(3):352-372.
96. Syring D. Bestimmung effizienter sortimente in der operativen sortimentsplanung. PhD thesis, Freie Univerisität, Berlin; 2003.
97. Thonemann U., Behrenbeck K., Küpper J., Magnus K.-H. Supply chain excellence im handel: trends, erfolgsfaktoren und best-practice-beispiele 2005, Gabler, Wiesbaden.
98. Urban T.L. An inventory-theoretic approach to product assortment and shelf-space allocation. Journal of Retailing 1998, 74(1):15-35.
99. van Donselaar K.H., Gaur V., van Woensel T., Broekmeulen R.A., Fransoo J.C. Ordering behavior in retail stores and implications for automated replenishment. Management Science 2010, 56(5):766-784.
100. van Ryzin G., Mahajan S. On the relationship between inventory costs and variety benefits in retail assortments. Management Science 1999, 45:1496-1509.
101. van Woensel T., van Donselaar K.H., Broekmeulen R.A.C.M., Fransoo J.C. Consumer responses to shelf out-of-stocks of perishable products. International Journal of Physical Distribution and Logistics Management 2007, 37(9):704-718.
102. van Zelst S., van Donselaar K., van Woensel T., Broekmeulen R., Fransoo J. Logistics drivers for shelf stacking in grocery retail stores: potential for efficiency improvement. International Journal of Production Economics 2009, 121(2):620-632.
103. Whang S. Markdown competition. Retail supply chain management. International series in operations research and management science 2009, Springer, Boston MA. N. Agrawal, S.A. Smith (Eds.).
104. Xin G., Messinger P.R., Li J. Influence of soldout products on consumer choice. Journal of Retailing 2009, 85(3):274-287.
105. Yang M.-H. An efficient algorithm to allocate shelf space. European Journal of Operational Research 2001, 131(1):107-118.
106. Yang M.-H., Chen W.-C. A study on shelf space allocation and management. International Journal of Production Economics 1999, 60-61(4):309-317.
107. Yücel E., Karaesmen F., Salman F.S., Türkay M. Optimizing product assortment under customer-driven demand substitution. European Journal of Operational Research 2009, 199(3):759-768.
108. Zenor M. The profit benefits of category management. Journal of Marketing Research 1994, 31(May):202-213.
109. Zufryden F.S. A dynamic programming approach for product selection and supermarket shelf-space allocation. Journal of the Operational Research Society 1986, 37(4):413-422.