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A model to optimize rack layout in a retail store

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  • Mowrey, Corinne H.
  • Parikh, Pratik J.
  • Gue, Kevin R.

Abstract

The physical layout of a retail store is known to influence the attitude and behavior of shoppers and affect store performance. An important role of the store's layout is to expose shoppers to merchandise in order to facilitate consideration and ultimately purchasing of exposed products. This work focuses on determining which rack layouts maximize exposure of products to a shopper. To do this, we introduce the retail rack layout problem (RRLP), which identifies the optimal single or multi-column rack orientations in a constrained space in order to maximize exposure to the shopper. To solve this problem, we propose a mixed-integer, non-linear optimization model, which we solve using a particle swarm optimization (PSO) algorithm. Results indicate that an increase of exposure ranging from 213–226% (small head turns) and 17–18% (large head turns) over 90°-rack layouts can be achieved with angled-racks (acute or obtuse from a shopper's travel path) depending on the duration of exposure. The increase in exposure comes at the expense of loss of display space and is sensitive to the shopper's field of regard (angular limit and depth of vision). We also show that multiple competitive layout designs with 1-, 2-, and even 3-columns may exist for a given system configuration that offer similar exposure values.

Suggested Citation

  • Mowrey, Corinne H. & Parikh, Pratik J. & Gue, Kevin R., 2018. "A model to optimize rack layout in a retail store," European Journal of Operational Research, Elsevier, vol. 271(3), pages 1100-1112.
  • Handle: RePEc:eee:ejores:v:271:y:2018:i:3:p:1100-1112
    DOI: 10.1016/j.ejor.2018.05.062
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    References listed on IDEAS

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    Cited by:

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    2. Monika Matušovičová & Martin Kuchta & Monika Stanková, 2022. "Improvement in Customer Experience Through the Creation of Virtual Brand Communities," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 34(1), pages 79-92.
    3. Nishio, Kazuki & Hoshino, Takahiro, 2022. "Joint modeling of effects of customer tier program on customer purchase duration and purchase amount," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    4. Gecili, Hakan & Parikh, Pratik J., 2022. "Joint shelf design and shelf space allocation problem for retailers," Omega, Elsevier, vol. 111(C).
    5. Bradley Guthrie & Pratik J. Parikh, 2021. "Evaluating exposure of a retail rack layout in 3D," Flexible Services and Manufacturing Journal, Springer, vol. 33(1), pages 107-135, March.
    6. Abdelaziz, Fouad Ben & Maddah, Bacel & Flamand, Tülay & Azar, Jimmy, 2024. "Store-Wide space planning balancing impulse and convenience," European Journal of Operational Research, Elsevier, vol. 312(1), pages 211-226.
    7. Uttam Karki & Pratik J. Parikh, 2024. "Visibility-based layout of a hospital unit – An optimization approach," Health Care Management Science, Springer, vol. 27(2), pages 188-207, June.

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