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Allocation of shelf space: A case study of refrigerated juice products in grocery stores

Author

Listed:
  • Mark G. Brown

    (Department of Citrus, Economic Research Department, 2129 McCarty Hall, PO Box 110240, University of Florida, Gainesville, FL 32611-0240)

  • Jong-Ying Lee

    (Department of Citrus, Economic Research Department, 2129 McCarty Hall, PO Box 110240, University of Florida, Gainesville, FL 32611-0240)

Abstract

The results of this study show how shelf space can be allocated between products in a profit maximizing framework. Cross sectional data were analyzed to determine whether orange juice might have less than optimal shelf space. Estimates of product demands indicate that cross-facings-per-store effects were insignificant; and, hence, only own-facings-per-store effects were used in the analysis. Results indicate that orange juice's actual share of department facings of 51% is less than its optimal share of department facings that range from 80 to 61.6% based on alternative markup assumptions. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • Mark G. Brown & Jong-Ying Lee, 1996. "Allocation of shelf space: A case study of refrigerated juice products in grocery stores," Agribusiness, John Wiley & Sons, Ltd., vol. 12(2), pages 113-121.
    • Handle: RePEc:wly:agribz:v:12:y:1996:i:2:p:113-121
    DOI: 10.1002/(SICI)1520-6297(199603/04)12:2<113::AID-AGR1>3.0.CO;2-5
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    References listed on IDEAS

    as
    1. Pauli, Hans & Hoecker, R. W., 1952. "Better Utilization of Selling Space in Food Stores: Part I, Relation of Size of Shelf Display to Sales of Canned Fruits and Vegetables," Marketing Research Reports 309901, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    2. 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.
    3. Marcel Corstjens & Peter Doyle, 1981. "A Model for Optimizing Retail Space Allocations," Management Science, INFORMS, vol. 27(7), pages 822-833, July.
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    Cited by:

    1. Prell, Mark A., 2004. "An Economic Model Of Wic, The Infant Formula Rebate Program, And The Retail Price Of Infant Formula," Food Assistance and Nutrition Research Reports 33879, United States Department of Agriculture, Economic Research Service.
    2. 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.
    3. 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.
    4. Caglar Gencosman, Burcu & Begen, Mehmet A., 2022. "Exact optimization and decomposition approaches for shelf space allocation," European Journal of Operational Research, Elsevier, vol. 299(2), pages 432-447.
    5. 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.

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