IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v26y2009i04ns0217595909002304.html
   My bibliography  Save this article

A Retail Category Management Model Integrating Shelf Space And Inventory Levels

Author

Listed:
  • B. RAMASESHAN

    (School of Marketing, Curtin University of Technology, Perth, 6148, Western Australia)

  • N. R. ACHUTHAN

    (Department of Mathematics & Statistics, Curtin University of Technology, Perth, 6148, Western Australia)

  • R. COLLINSON

    (Department of Mathematics & Statistics, Curtin University of Technology, Perth, 6148, Western Australia)

Abstract

A retail category management model that considers the interplay of optimal product assortment decisions, space allocation and inventory quantities is presented in this paper. Specifically, the proposed model maximizes the total net profit in terms of decision variables expressing product assortment, shelf space allocation and common review period. The model takes into consideration several constraints such as the available shelf space, backroom inventory space, retailer's financial resources, and estimates of rate of demand for products based on shelf space allocation and competing products. The review period can take any values greater than zero. Results of the proposed model were compared with the results of the current industry practice for randomly generated product assortments of size six, ten and fourteen. The model also outperformed the literature benchmark. The paper demonstrates that the optimal common review period is flexible enough to accommodate the administrative restrictions of delivery schedules for products, without significantly deviating from the optimal solution.

Suggested Citation

  • B. Ramaseshan & N. R. Achuthan & R. Collinson, 2009. "A Retail Category Management Model Integrating Shelf Space And Inventory Levels," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 26(04), pages 457-478.
    • Handle: RePEc:wsi:apjorx:v:26:y:2009:i:04:n:s0217595909002304
    DOI: 10.1142/S0217595909002304
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595909002304
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217595909002304?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.

    Citations

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


    Cited by:

    1. Paballo Patience Ntobaki & Raymond Hawkins-Mofokeng & Tshepo Tlapana, 2022. "Consumer purchase behaviour of perishable products from selected stores in Durban," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 76-81, January.
    2. 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.
    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. Eisend, Martin, 2014. "Shelf space elasticity: A meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 168-181.
    5. 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.

    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:wsi:apjorx:v:26:y:2009:i:04:n:s0217595909002304. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    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.