IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v213y2011i2p430-441.html
   My bibliography  Save this article

A fuzzy goal programming approach for mid-term assortment planning in supermarkets

Author

Listed:
  • Lotfi, M.M.
  • Torabi, S.A.

Abstract

We develop a fuzzy mixed integer non-linear goal programming model for the mid-term assortment planning of supermarkets in which three conflicting objectives namely profitability, customer service, and space utilization are incorporated. The items and brands in a supermarket compete to obtain more space and better shelf level. This model offers different service levels to loyal and disloyal customers, applies joint replenishment policy, and accounts for the holding time limitation of perishable items. We propose a fuzzy approach due to the imprecise nature of the goals' target levels and priorities as well as critical data. A heuristic method inspiring by the problem-specific rules is developed to solve this complex model approximately within a reasonable time. Finally, the proposed approach is validated through several numerical examples and results are reported.

Suggested Citation

  • Lotfi, M.M. & Torabi, S.A., 2011. "A fuzzy goal programming approach for mid-term assortment planning in supermarkets," European Journal of Operational Research, Elsevier, vol. 213(2), pages 430-441, September.
    • Handle: RePEc:eee:ejores:v:213:y:2011:i:2:p:430-441
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221711003067
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R. E. Bellman & L. A. Zadeh, 1970. "Decision-Making in a Fuzzy Environment," Management Science, INFORMS, vol. 17(4), pages 141-164, December.
    2. Akoz, Onur & Petrovic, Dobrila, 2007. "A fuzzy goal programming method with imprecise goal hierarchy," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1427-1433, September.
    3. Hansen, Jared M. & Raut, Sumit & Swami, Sanjeev, 2010. "Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic Approaches," Journal of Retailing, Elsevier, vol. 86(1), pages 94-105.
    4. Reyes, Pedro M. & Frazier, Gregory V., 2007. "Goal programming model for grocery shelf space allocation," European Journal of Operational Research, Elsevier, vol. 181(2), pages 634-644, September.
    5. Yang, Ming-Hsien & Chen, Wen-Cher, 1999. "A study on shelf space allocation and management," International Journal of Production Economics, Elsevier, vol. 60(1), pages 309-317, April.
    6. Hariga, Moncer A. & Al-Ahmari, Abdulrahman & Mohamed, Abdel-Rahman A., 2007. "A joint optimisation model for inventory replenishment, product assortment, shelf space and display area allocation decisions," European Journal of Operational Research, Elsevier, vol. 181(1), pages 239-251, August.
    7. Romero, Carlos, 2004. "A general structure of achievement function for a goal programming model," European Journal of Operational Research, Elsevier, vol. 153(3), pages 675-686, March.
    8. Hu, Chao-Fang & Teng, Chang-Jun & Li, Shao-Yuan, 2007. "A fuzzy goal programming approach to multi-objective optimization problem with priorities," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1319-1333, February.
    9. Yang, Ming-Hsien, 2001. "An efficient algorithm to allocate shelf space," European Journal of Operational Research, Elsevier, vol. 131(1), pages 107-118, May.
    10. Chen, Liang-Hsuan & Tsai, Feng-Chou, 2001. "Fuzzy goal programming with different importance and priorities," European Journal of Operational Research, Elsevier, vol. 133(3), pages 548-556, September.
    11. van Donselaar, K. & van Woensel, T. & Broekmeulen, R. & Fransoo, J., 2006. "Inventory control of perishables in supermarkets," International Journal of Production Economics, Elsevier, vol. 104(2), pages 462-472, December.
    12. Hwang, Hark & Choi, Bum & Lee, Min-Jin, 2005. "A model for shelf space allocation and inventory control considering location and inventory level effects on demand," International Journal of Production Economics, Elsevier, vol. 97(2), pages 185-195, August.
    13. Marcel Corstjens & Peter Doyle, 1981. "A Model for Optimizing Retail Space Allocations," Management Science, INFORMS, vol. 27(7), pages 822-833, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ding, Xiaohui & Chen, Caihua & Li, Chongshou & Lim, Andrew, 2021. "Product demand estimation for vending machines using video surveillance data: A group-lasso method," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    2. Cinzia Colapinto & Raja Jayaraman & Simone Marsiglio, 2017. "Multi-criteria decision analysis with goal programming in engineering, management and social sciences: a state-of-the art review," Annals of Operations Research, Springer, vol. 251(1), pages 7-40, April.
    3. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    4. Alireza Azimian & Belaid Aouni, 2017. "Supply chain management through the stochastic goal programming model," Annals of Operations Research, Springer, vol. 251(1), pages 351-365, April.
    5. Irion, Jens & Lu, Jye-Chyi & Al-Khayyal, Faiz & Tsao, Yu-Chung, 2012. "A piecewise linearization framework for retail shelf space management models," European Journal of Operational Research, Elsevier, vol. 222(1), pages 122-136.
    6. Bianchi-Aguiar, Teresa & Hübner, Alexander & Carravilla, Maria Antónia & Oliveira, José Fernando, 2021. "Retail shelf space planning problems: A comprehensive review and classification framework," European Journal of Operational Research, Elsevier, vol. 289(1), pages 1-16.
    7. Tsao, Yu-Chung & Lu, Jye-Chyi & An, Na & Al-Khayyal, Faiz & Lu, Richard W. & Han, Guanghua, 2014. "Retailer shelf-space management with trade allowance: A Stackelberg game between retailer and manufacturers," International Journal of Production Economics, Elsevier, vol. 148(C), pages 133-144.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bianchi-Aguiar, Teresa & Hübner, Alexander & Carravilla, Maria Antónia & Oliveira, José Fernando, 2021. "Retail shelf space planning problems: A comprehensive review and classification framework," European Journal of Operational Research, Elsevier, vol. 289(1), pages 1-16.
    2. M M Lotfi & M Rabbani & S F Ghaderi, 2011. "A weighted goal programming approach for replenishment planning and space allocation in a supermarket," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(6), pages 1128-1137, June.
    3. J Irion & J-C Lu & F A Al-Khayyal & Y-C Tsao, 2011. "A hierarchical decomposition approach to retail shelf space management and assortment decisions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1861-1870, October.
    4. Irion, Jens & Lu, Jye-Chyi & Al-Khayyal, Faiz & Tsao, Yu-Chung, 2012. "A piecewise linearization framework for retail shelf space management models," European Journal of Operational Research, Elsevier, vol. 222(1), pages 122-136.
    5. Bianchi-Aguiar, Teresa & Silva, Elsa & Guimarães, Luis & Carravilla, Maria Antónia & Oliveira, José F., 2018. "Allocating products on shelves under merchandising rules: Multi-level product families with display directions," Omega, Elsevier, vol. 76(C), pages 47-62.
    6. Hasmukh Gajjar & Gajendra Adil, 2010. "A piecewise linearization for retail shelf space allocation problem and a local search heuristic," Annals of Operations Research, Springer, vol. 179(1), pages 149-167, September.
    7. Robert Russell & Timothy Urban, 2010. "The location and allocation of products and product families on retail shelves," Annals of Operations Research, Springer, vol. 179(1), pages 131-147, September.
    8. Zhao, Ju & Zhou, Yong-Wu & Wahab, M.I.M., 2016. "Joint optimization models for shelf display and inventory control considering the impact of spatial relationship on demand," European Journal of Operational Research, Elsevier, vol. 255(3), pages 797-808.
    9. Gecili, Hakan & Parikh, Pratik J., 2022. "Joint shelf design and shelf space allocation problem for retailers," Omega, Elsevier, vol. 111(C).
    10. Hübner, Alexander H. & Kuhn, Heinrich, 2012. "Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management," Omega, Elsevier, vol. 40(2), pages 199-209, April.
    11. Yan-Kwang Chen & Shi-Xin Weng & Tsai-Pei Liu, 2020. "Teaching–Learning Based Optimization (TLBO) with Variable Neighborhood Search to Retail Shelf-Space Allocation," Mathematics, MDPI, vol. 8(8), pages 1-16, August.
    12. Alexander Hübner & Kai Schaal, 2017. "Effect of replenishment and backroom on retail shelf-space planning," Business Research, Springer;German Academic Association for Business Research, vol. 10(1), pages 123-156, June.
    13. Hübner, Alexander & Schaal, Kai, 2017. "A shelf-space optimization model when demand is stochastic and space-elastic," Omega, Elsevier, vol. 68(C), pages 139-154.
    14. Hansen, Jared M. & Raut, Sumit & Swami, Sanjeev, 2010. "Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic Approaches," Journal of Retailing, Elsevier, vol. 86(1), pages 94-105.
    15. Kim, Gwang & Moon, Ilkyeong, 2021. "Integrated planning for product selection, shelf-space allocation, and replenishment decision with elasticity and positioning effects," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    16. Flamand, Tulay & Ghoniem, Ahmed & Haouari, Mohamed & Maddah, Bacel, 2018. "Integrated assortment planning and store-wide shelf space allocation: An optimization-based approach," Omega, Elsevier, vol. 81(C), pages 134-149.
    17. Ostermeier, Manuel & Düsterhöft, Tobias & Hübner, Alexander, 2021. "A model and solution approach for store-wide shelf space allocation," Omega, Elsevier, vol. 102(C).
    18. Düsterhöft, Tobias & Hübner, Alexander & Schaal, Kai, 2020. "A practical approach to the shelf-space allocation and replenishment problem with heterogeneously sized shelves," European Journal of Operational Research, Elsevier, vol. 282(1), pages 252-266.
    19. Tsao, Yu-Chung & Lu, Jye-Chyi & An, Na & Al-Khayyal, Faiz & Lu, Richard W. & Han, Guanghua, 2014. "Retailer shelf-space management with trade allowance: A Stackelberg game between retailer and manufacturers," International Journal of Production Economics, Elsevier, vol. 148(C), pages 133-144.
    20. Schaal, Kai & Hübner, Alexander, 2018. "When does cross-space elasticity matter in shelf-space planning? A decision analytics approach," Omega, Elsevier, vol. 80(C), pages 135-152.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:213:y:2011:i:2:p:430-441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.