IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v271y2018i3p1100-1112.html
   My bibliography  Save this article

A model to optimize rack layout in a retail store

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221718304818
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2018.05.062?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Yi Lu & Hyun-Bo Seo, 2015. "Developing Visibility Analysis for a Retail Store: A Pilot Study in a Bookstore," Environment and Planning B, , vol. 42(1), pages 95-109, February.
    2. Bozer, Yavuz A. & Wang, Chi-Tai, 2012. "A graph-pair representation and MIP-model-based heuristic for the unequal-area facility layout problem," European Journal of Operational Research, Elsevier, vol. 218(2), pages 382-391.
    3. Shankar, Venkatesh & Inman, J. Jeffrey & Mantrala, Murali & Kelley, Eileen & Rizley, Ross, 2011. "Innovations in Shopper Marketing: Current Insights and Future Research Issues," Journal of Retailing, Elsevier, vol. 87(S1), pages 29-42.
    4. Turley, L. W. & Milliman, Ronald E., 2000. "Atmospheric Effects on Shopping Behavior: A Review of the Experimental Evidence," Journal of Business Research, Elsevier, vol. 49(2), pages 193-211, August.
    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. Haluk Yapicioglu & Alice Smith, 2012. "Retail space design considering revenue and adjacencies using a racetrack aisle network," IISE Transactions, Taylor & Francis Journals, vol. 44(6), pages 446-458.
    7. d'Astous, Alain, 2000. "Irritating Aspects of the Shopping Environment," Journal of Business Research, Elsevier, vol. 49(2), pages 149-156, August.
    8. Tulay Flamand & Ahmed Ghoniem & Bacel Maddah, 2016. "Promoting impulse buying by allocating retail shelf space to grouped product categories," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(7), pages 953-969, July.
    9. Anderson, Evan E, 1979. "An Analysis of Retail Display Space: Theory and Methods," The Journal of Business, University of Chicago Press, vol. 52(1), pages 103-118, January.
    10. Anirban Kundu & Pranab K. Dan, 2012. "Metaheuristic in facility layout problems: current trend and future direction," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 10(2), pages 238-253.
    11. Kevin Gue & Russell Meller, 2009. "Aisle configurations for unit-load warehouses," IISE Transactions, Taylor & Francis Journals, vol. 41(3), pages 171-182.
    12. Öztürkoğlu, Ö. & Gue, K.R. & Meller, R.D., 2014. "A constructive aisle design model for unit-load warehouses with multiple pickup and deposit points," European Journal of Operational Research, Elsevier, vol. 236(1), pages 382-394.
    13. Marcel Corstjens & Peter Doyle, 1981. "A Model for Optimizing Retail Space Allocations," Management Science, INFORMS, vol. 27(7), pages 822-833, July.
    14. Yapicioglu, Haluk & Smith, Alice E. & Dozier, Gerry, 2007. "Solving the semi-desirable facility location problem using bi-objective particle swarm," European Journal of Operational Research, Elsevier, vol. 177(2), pages 733-749, March.
    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. 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).
    2. Gecili, Hakan & Parikh, Pratik J., 2022. "Joint shelf design and shelf space allocation problem for retailers," Omega, Elsevier, vol. 111(C).
    3. 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.
    4. Basu, Rituparna & Paul, Justin & Singh, Kandarp, 2022. "Visual merchandising and store atmospherics: An integrated review and future research directions," Journal of Business Research, Elsevier, vol. 151(C), pages 397-408.
    5. 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.
    6. 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.

    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. Karki, Uttam & Guthrie, Bradley & Parikh, Pratik J., 2021. "Joint determination of rack configuration and shelf space allocation for a retailer," International Journal of Production Economics, Elsevier, vol. 234(C).
    2. 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.
    3. Ostermeier, Manuel & Düsterhöft, Tobias & Hübner, Alexander, 2021. "A model and solution approach for store-wide shelf space allocation," Omega, Elsevier, vol. 102(C).
    4. 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.
    5. 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.
    6. 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.
    7. Gecili, Hakan & Parikh, Pratik J., 2022. "Joint shelf design and shelf space allocation problem for retailers," Omega, Elsevier, vol. 111(C).
    8. repec:dau:papers:123456789/1758 is not listed on IDEAS
    9. 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.
    10. Kuo, Chia-Wei & Yang, Shu-Jung Sunny, 2013. "The role of store brand positioning for appropriating supply chain profit under shelf space allocation," European Journal of Operational Research, Elsevier, vol. 231(1), pages 88-97.
    11. Derhami, Shahab & Smith, Jeffrey S. & Gue, Kevin R., 2020. "A simulation-based optimization approach to design optimal layouts for block stacking warehouses," International Journal of Production Economics, Elsevier, vol. 223(C).
    12. 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.
    13. Ge, Jiwen & Honhon, Dorothee & Fransoo, Jan C. & Zhao, Lei, 2020. "Manufacturer competition in the nanostore retail channel," European Journal of Operational Research, Elsevier, vol. 286(1), pages 360-374.
    14. Li Zhou & Huwei Liu & Junhui Zhao & Fan Wang & Jianglong Yang, 2022. "Performance Analysis of Picking Routing Strategies in the Leaf Layout Warehouse," Mathematics, MDPI, vol. 10(17), pages 1-28, September.
    15. Alexander Hübner & Fabian Schäfer & Kai N. Schaal, 2020. "Maximizing Profit via Assortment and Shelf‐Space Optimization for Two‐Dimensional Shelves," Production and Operations Management, Production and Operations Management Society, vol. 29(3), pages 547-570, March.
    16. 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.
    17. Öztürkoğlu, Ö. & Gue, K.R. & Meller, R.D., 2014. "A constructive aisle design model for unit-load warehouses with multiple pickup and deposit points," European Journal of Operational Research, Elsevier, vol. 236(1), pages 382-394.
    18. Öztürkoğlu, Ömer & Hoser, Deniz, 2019. "A discrete cross aisle design model for order-picking warehouses," European Journal of Operational Research, Elsevier, vol. 275(2), pages 411-430.
    19. Leng, Mingming & Parlar, Mahmut & Zhang, Dengfeng, 2014. "Cooperative game analysis of retail space-exchange problems," European Journal of Operational Research, Elsevier, vol. 232(2), pages 393-404.
    20. 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).
    21. Demoulin, Nathalie & Willems, Kim, 2019. "Servicescape irritants and customer satisfaction: The moderating role of shopping motives and involvement," Journal of Business Research, Elsevier, vol. 104(C), pages 295-306.

    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:271:y:2018:i:3:p:1100-1112. 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.