A piecewise linearization framework for retail shelf space management models

European Journal of Operational Research

Volumn 222, Issue 1, 2012, Pages 122-136

  Irion, Jens ^a   Lu, Jye Chyi ^b   Al Khayyal, Faiz ^b   Tsao, Yu Chung ^b  

^a UNIVERSITY OF KARLSRUHE   (Germany)

^b Georgia Institute of Technology   (United States)

Author keywords

Assortment planning; Mixed integer programming; Nonlinear optimization; Resource allocation

Indexed keywords

ASSORTMENT PLANNING; CROSS-ELASTICITIES; ERROR BOUND; LARGE-SCALE OPTIMIZATION; MIXED INTEGER PROGRAMMING; MIXED INTEGER PROGRAMMING (MIP); MIXED-INTEGER NONLINEAR PROGRAMMING; NEAR-OPTIMAL SOLUTIONS; NON-LINEAR OPTIMIZATION; NONCONVEX OPTIMIZATION; NUMERICAL EXPERIMENTS; PIECEWISE LINEARIZATION; SHELF SPACE ALLOCATION; SOLUTION QUALITY; SPACE MANAGEMENT;

CONVEX OPTIMIZATION; ELASTICITY; NUMERICAL METHODS; OPTIMIZATION; PROFITABILITY; RESOURCE ALLOCATION;

SALES;

EID: 84861835765     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2012.04.021     Document Type: Article

References (42)

1. H. Abbott, and U.S. Palekar Retail replenishment models with display-space elastic demand European Journal of Operational Research 186 2 2008 586 607 (Pubitemid 47615314)
2. F.A. Al-Khayyal Jointly constrained bilinear programs and related problems: an overview Computers & Mathematics with Applications 19 8 1990 53 62
3. F.A. Al-Khayyal, and J.E. Falk Jointly constrained biconvex programming Mathematics of Operations Research 8 2 1983 273 286
4. N. Amrouche, and G. Zaccour Shelf-space allocation of national and private brands European Journal of Operational Research 180 2007 648 663 (Pubitemid 46199071)
5. E.E. Anderson An analysis of retail display space: theory and methods Journal of Business 52 1 1979 103 118
6. Bonami, P., Lorenz T.B., Andrew R.C., et al., 2005. An Algorithmic Framework for Convex Mixed Integer Nonlinear Programs, IBM Research Report RC23771, October 31, 2005.
7. N. Borin, and P. Farris A sensitivity analysis of retailer shelf management models Journal of Retailing 71 2 1995 153 171
8. N. Borin, P. Farris, and J. Freeland A model for determining retail product category assortment and shelf space allocation Decision Sciences 25 3 1994 359 384
9. W.M. Brown, and W.T. Tucker Vanishing shelf space Atlanta Economic Review 1961 9 13
10. A. Bultez, and P. Naert SHARP: shelf space allocation for retailers profit Marketing Science 7 3 1988 211 231
11. A. Bultez, P. Naert, E. Gijsbrechts, and P.V. Abelle Asymmetric cannibalism in retail assortments Journal of Retailing 65 2 1989 153 192
12. M.R. Bussieck, and A. Pruessner Mixed-Integer Nonlinear Programming SIAG/OPT Newsletter: Views & News 14 1 2003
13. G.P. Cachon, and C. Terwiesch Retail assortment planning in the presence of consumer search Manufacturing & Service Operations Management 7 4 2005 330 346 (Pubitemid 41706018)
14. K. Campo, E. Gijsbrechts, T. Goossens, and A. Verhetsel The impact of location factors on the attractiveness and optimal space shares of product categories International Journal of Research in Marketing 17 2000 225 279
15. Y. Chen, J.D. Hess, R.T. Wilcox, and Z.H. Zhang Accounting profits versus marketing profits: a relevant metric for category management Marketing Science 18 3 1999 208 229
16. J.M. Chen, H.L. Cheng, and M.C. Chien On channel coordination through revenue-sharing contracts with price and shelf-space dependent demand Applied Mathematical Modelling 35 2011 4886 4901
17. M. Corstjens, and P. Doyle A model for optimizing retail shelf space allocations Management Science 27 7 1981 822 833
18. R.C. Curhan The relationship between shelf space and unit sales in supermarkets Journal of Marketing Research 9 1972 406 412
19. P. Desmet, and V. Renaudin Estimation of product category sales responsiveness to allocated shelf space International Journal of Research in Marketing 15 1998 443 457 (Pubitemid 128375200)
20. X. Drèze, S.J. Hoch, and M.E. Purk Shelf management and space elasticity Journal of Retailing 70 4 1994 301 326
21. A.S.C. Ehrenberg Repeat Buying: Theories and Applications 1972 Amsterdam North Holland
22. C.-Y. Gau, and L.E. Schrage Implementation and testing of a branch-and-bound based method for deterministic global optimization: operations research applications C.A. Floudas, P.M. Pardalos, Frontiers in Global Optimization 2003 Kluwer Academic Publishers Boston 1 20
23. P. Hansen, and H. Heinsbroek Product selection and space allocation in supermarkets European Journal of Operational Research 3 1979 474 484
24. M.A. Hariga, A. Al-Ahmari, and A.A. Mohamed A joint optimisation model for inventory replenishment, product assortment, shelf space and display area allocation decisions European Journal of Operational Research 181 2007 239 251
25. H. Hwang, B. Choi, and M.J. Lee A model for shelf space allocation and inventory control considering location and inventory level effects on demand International Journal of Production Economics 97 2005 185 195 (Pubitemid 40744033)
26. J. Irion, J.C. Lu, F. Al-Khayyal, and Y.C. Tsao A hierarchical decomposition approach to retail shelf space management and assortment decisions Journal of the Operational Research Society 62 2011 1861 1870
27. G. Kok, M. Fisher, 2004. Demand Estimation and Assortment Optimization under Substitution: Methodology and Application, Working Paper, Fuqua School of Business, Duke University, Durham, NC.
28. A. Lim, B. Rodrigues, and X. Zhang Metaheuristics with local search technique for retail shelf-space optimization Management Science 50 1 2004 117 131
29. LINDO Systems, Inc., LINGO User's Manual, LINDO Systems, Chicago, IL. 2002.
30. M.M. Lotfi, and S.A. Torabi A fuzzy goal programming approach for mid-term assortment planning in supermarkets European Journal of Operational Research 213 2011 411 430
31. C.C. Murray, D. Talukdar, and A. Gosavi Joint optimization of product price, display orientation and shelf-space allocation in retail category management Journal of Retailing 86 2010 125 136
32. POPAI. Consumer Buying Habits Study. Point of Purchase Advertising Institute, Washington, DC, 1997.
33. P.M. Reyes, and G.V. Frazier Goal programming model for grocery shelf space allocation European Journal of Operational Research 181 2007 634 644 (Pubitemid 46413592)
34. H.D. Sherali, and W.P. Adams A Reformulation-Linearization Technique for Solving Discrete and Continuous Nonconvex Problems 1999 Kluwer Dordrecht
35. S.A. Smith, and N. Agrawal Management of multi-item retail inventory systems with demand substitution Operations Research 48 1 2000 50 64
36. S.M. Stefanov Separable Programming: Theory and Methods 2001 Kluwer Dordrecht
37. J.G. Szmerekovsky, V. Tilson, and J. Zhang Analytical model of adoption of item level RFID in a two-echelon supply chain with shelf-space and price-dependent demand Decision Support Systems 51 4 2011 833 841
38. M. Tawarmalani, and N.V. Sahinidis Convexification and Global Optimization in Continuous and Mixed-Integer Nonlinear Programming: Theory, Algorithms, Software, and Applications Nonconvex Optimization and its Applications series vol. 74 2002 Kluwer Academic Publishers
39. T.L. Urban An inventory-theoretic approach to product assortment and shelf-space allocation Journal of Retailing 74 1 1998 15 35 (Pubitemid 128181879)
40. M.-H. Yang An efficient algorithm to allocate shelf space European Journal of Operational Research 131 2001 107 118 (Pubitemid 32264919)
41. M.-H. Yang, and W.-C. Chen A study on shelf space allocation and management International Journal of Production Economics 60-61 1999 309 317
42. F.S. Zufryden A dynamic programming approach for product selection and supermarkt shelf-space allocation Journal of the Operational Research Society 37 4 1986 413 422