IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v115y2023ics0305048322001566.html
   My bibliography  Save this article

An analytical assessment of demand effects in omni-channel assortment planning

Author

Listed:
  • Schäfer, Fabian
  • Hense, Jonas
  • Hübner, Alexander

Abstract

The advent of omni-channel (OC) retailing makes assortments seamlessly available across channels and affects customer behavior. Whereas the demand effects within channels are well known, the effects across channels are less clear. A vast variety of assortment-related demand effects in bricks-and-mortar stores, webshops, and across channels has a potential impact on retailers’ profitability. The multitude makes it costly to measure each effect empirically, which is further aggravated by interdependencies between products, channels and effects, and the resulting numerical complexity. Despite most retailers adopting OC assortments, the relevance and interplay of these demand effects is neither fully clear from an empirical nor an optimization perspective. It becomes necessary to better understand how assortment-related decisions impact customer behavior and optimal assortments.

Suggested Citation

  • Schäfer, Fabian & Hense, Jonas & Hübner, Alexander, 2023. "An analytical assessment of demand effects in omni-channel assortment planning," Omega, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:jomega:v:115:y:2023:i:c:s0305048322001566
    DOI: 10.1016/j.omega.2022.102749
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048322001566
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2022.102749?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. Derhami, Shahab & Montreuil, Benoit & Bau, Guilhem, 2021. "Assessing product availability in omnichannel retail networks in the presence of on-demand inventory transshipment and product substitution," Omega, Elsevier, vol. 102(C).
    2. Campo, Katia & Gijsbrechts, Els & Nisol, Patricia, 2004. "Dynamics in consumer response to product unavailability: do stock-out reactions signal response to permanent assortment reductions?," Journal of Business Research, Elsevier, vol. 57(8), pages 834-843, August.
    3. Santiago Gallino & Antonio Moreno, 2014. "Integration of Online and Offline Channels in Retail: The Impact of Sharing Reliable Inventory Availability Information," Management Science, INFORMS, vol. 60(6), pages 1434-1451, June.
    4. Tan, Baris & Karabati, Selcuk, 2013. "Retail inventory management with stock-out based dynamic demand substitution," International Journal of Production Economics, Elsevier, vol. 145(1), pages 78-87.
    5. Erjen van Nierop & Dennis Fok & Philip Hans Franses, 2008. "Interaction Between Shelf Layout and Marketing Effectiveness and Its Impact on Optimizing Shelf Arrangements," Marketing Science, INFORMS, vol. 27(6), pages 1065-1082, 11-12.
    6. 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.
    7. Atalay , Selin & Onur Bodur , H. & Rasolofoarison , Dina, 2012. "Shining in the Center: Central Gaze Cascade Effect on Product Choice," HEC Research Papers Series 978, HEC Paris.
    8. 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.
    9. Eisend, Martin, 2014. "Shelf space elasticity: A meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 168-181.
    10. Joseph Geunes & Yiqiang Su, 2020. "Single-period assortment and stock-level decisions for dual sales channels with capacity limits and uncertain demand," International Journal of Production Research, Taylor & Francis Journals, vol. 58(18), pages 5579-5600, September.
    11. Hübner, Alexander & Kuhn, Heinrich & Kühn, Sandro, 2016. "An efficient algorithm for capacitated assortment planning with stochastic demand and substitution," European Journal of Operational Research, Elsevier, vol. 250(2), pages 505-520.
    12. Daria Dzyabura & Srikanth Jagabathula, 2018. "Offline Assortment Optimization in the Presence of an Online Channel," Management Science, INFORMS, vol. 64(6), pages 2767-2786, June.
    13. 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.
    14. A. Gürhan Kök & Marshall L. Fisher & Ramnath Vaidyanathan, 2015. "Assortment Planning: Review of Literature and Industry Practice," International Series in Operations Research & Management Science, in: Narendra Agrawal & Stephen A. Smith (ed.), Retail Supply Chain Management, edition 2, chapter 0, pages 175-236, Springer.
    15. Yan-Kwang Chen & Fei-Rung Chiu & Hung-Chang Liao & Chien-Hua Yeh, 2016. "Joint optimization of inventory control and product placement on e-commerce websites using genetic algorithms," Electronic Commerce Research, Springer, vol. 16(4), pages 479-502, December.
    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. Hansen, Pierre & Heinsbroek, Hans, 1979. "Product selection and space allocation in supermarkets," European Journal of Operational Research, Elsevier, vol. 3(6), pages 474-484, November.
    18. Ghoniem, Ahmed & Maddah, Bacel, 2015. "Integrated retail decisions with multiple selling periods and customer segments: Optimization and insights," Omega, Elsevier, vol. 55(C), pages 38-52.
    19. Dorothée Honhon & Vishal Gaur & Sridhar Seshadri, 2010. "Assortment Planning and Inventory Decisions Under Stockout-Based Substitution," Operations Research, INFORMS, vol. 58(5), pages 1364-1379, October.
    20. Gecili, Hakan & Parikh, Pratik J., 2022. "Joint shelf design and shelf space allocation problem for retailers," Omega, Elsevier, vol. 111(C).
    21. A. Gürhan Kök & Marshall L. Fisher, 2007. "Demand Estimation and Assortment Optimization Under Substitution: Methodology and Application," Operations Research, INFORMS, vol. 55(6), pages 1001-1021, December.
    22. Selin Atalay & H. Onur Bodur & Dina Rasolofoarison, 2012. "Shining in the Center: Central Gaze Cascade Effect on Product Choice," Post-Print hal-00758534, HAL.
    23. 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.
    24. 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.
    25. Beck, Norbert & Rygl, David, 2015. "Categorization of multiple channel retailing in Multi-, Cross-, and Omni†Channel Retailing for retailers and retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 170-178.
    26. 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.
    27. Andrés Abeliuk & Gerardo Berbeglia & Manuel Cebrian & Pascal Van Hentenryck, 2016. "Assortment optimization under a multinomial logit model with position bias and social influence," 4OR, Springer, vol. 14(1), pages 57-75, March.
    28. Nathan Kallus & Madeleine Udell, 2020. "Dynamic Assortment Personalization in High Dimensions," Operations Research, INFORMS, vol. 68(4), pages 1020-1037, July.
    29. Ostermeier, Manuel & Düsterhöft, Tobias & Hübner, Alexander, 2021. "A model and solution approach for store-wide shelf space allocation," Omega, Elsevier, vol. 102(C).
    30. Hübner, Alexander & Hense, Jonas & Dethlefs, Christian, 2022. "The revival of retail stores via omnichannel operations: A literature review and research framework," European Journal of Operational Research, Elsevier, vol. 302(3), pages 799-818.
    31. Paat Rusmevichientong & Zuo-Jun Max Shen & David B. Shmoys, 2010. "Dynamic Assortment Optimization with a Multinomial Logit Choice Model and Capacity Constraint," Operations Research, INFORMS, vol. 58(6), pages 1666-1680, December.
    32. Stephen A. Smith & Narendra Agrawal, 2000. "Management of Multi-Item Retail Inventory Systems with Demand Substitution," Operations Research, INFORMS, vol. 48(1), pages 50-64, February.
    33. A. Selin Atalay & H. Onur Bodur & Dina Rasolofoarison, 2012. "Shining in the Center: Central Gaze Cascade Effect on Product Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(4), pages 848-866.
    34. Hübner, Alexander & Schaal, Kai, 2017. "An integrated assortment and shelf-space optimization model with demand substitution and space-elasticity effects," European Journal of Operational Research, Elsevier, vol. 261(1), pages 302-316.
    35. 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. Chen, Yajing & Wu, Zhimin & Wang, Yunlong, 2024. "Omnichannel product selection and shelf space planning optimization," Omega, Elsevier, vol. 127(C).

    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. Hense, Jonas & Hübner, Alexander, 2022. "Assortment optimization in omni-channel retailing," European Journal of Operational Research, Elsevier, vol. 301(1), pages 124-140.
    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. Chen, Yajing & Wu, Zhimin & Wang, Yunlong, 2024. "Omnichannel product selection and shelf space planning optimization," Omega, Elsevier, vol. 127(C).
    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. Gecili, Hakan & Parikh, Pratik J., 2022. "Joint shelf design and shelf space allocation problem for retailers," Omega, Elsevier, vol. 111(C).
    7. Kateryna Czerniachowska, 2022. "A genetic algorithm for the retail shelf space allocation problem with virtual segments," OPSEARCH, Springer;Operational Research Society of India, vol. 59(1), pages 364-412, March.
    8. 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.
    9. 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.
    10. Hübner, Alexander & Schaal, Kai, 2017. "An integrated assortment and shelf-space optimization model with demand substitution and space-elasticity effects," European Journal of Operational Research, Elsevier, vol. 261(1), pages 302-316.
    11. 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.
    12. Hübner, Alexander & Hense, Jonas & Dethlefs, Christian, 2022. "The revival of retail stores via omnichannel operations: A literature review and research framework," European Journal of Operational Research, Elsevier, vol. 302(3), pages 799-818.
    13. 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.
    14. 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.
    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. Transchel, Sandra & Buisman, Marjolein E. & Haijema, Rene, 2022. "Joint assortment and inventory optimization for vertically differentiated products under consumer-driven substitution," European Journal of Operational Research, Elsevier, vol. 301(1), pages 163-179.
    17. 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.
    18. Hübner, Alexander & Kuhn, Heinrich & Kühn, Sandro, 2016. "An efficient algorithm for capacitated assortment planning with stochastic demand and substitution," European Journal of Operational Research, Elsevier, vol. 250(2), pages 505-520.
    19. 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.
    20. Wang, Kung-Jeng & Febri, Natalia, 2024. "The vending machine deployment and shelf display problem: A bi-layer optimization approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).

    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:jomega:v:115:y:2023:i:c:s0305048322001566. 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/wps/find/journaldescription.cws_home/375/description#description .

    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.