Aim/purpose – Shelf space is one of the most important tools for attracting customers’ attention in a retail store. This paper aims to develop a practical shelf space allocation model with visible vertical and horizontal categories. and formulate it in linear and non-linear forms. Design/methodology/approach – The research is mainly based on operational research. Simulation, mathematical optimization, and linear and nonlinear programming methods are mainly used. Special attention is given to the decision variables and constraints. Changing the dimensioning of the decision variables results in an improvement in the formulation of the problem, which in turn allows for obtaining an optimal solution. Findings – A comparison of the developed shelf space allocation models with visible vertical and horizontal categories in linear and nonlinear forms is presented. The computational experiments were performed with the help of CPLEX solver, which shows that the optimal solution of the linear problem formulation was obtained within a couple of seconds. However, a nonlinear form of this problem found the optimal solution only in 19 out of 45 instances. An increase in the time limits slightly improves the performance of the solutions of the nonlinear form. Research implications/limitations – The main implication of research results for science is related to the possibility of determining an optimal solution to the initially formulated nonlinear shelf space allocation problem. The main implication for practice is to take into consideration the practical constraints based on customers’ requirements. The main limitations are the lack of storage conditions and holding time constraints. Originality/value/contribution – The main contribution is related to developing mathematical models that consider simultaneous categorization of products vertically, based on one characteristic, and horizontally, based on another characteristic. Contribution is also related to extending the shelf space allocation theory with the shelf space allocation problem model in relation to four sets of constraints: shelf constraints, product constraints, orientation constraints, and band constraints.
Shelf space is one of the essential resources in logistic decisions. Order picking is the most time-consuming and labourintensive of the distribution processes in distribution centres. Current research investigates the allocation of shelf space on a rack in a distribution centre and a retail store. The retail store, as well as the distribution centre, offers a large number of shelf storage locations. In this research, multi-orientated capping as a product of the rack allocation method is investigated. Capping allows additional product items to be placed on the rack. We show the linearisation technique with the help of which the models with capping could be linearised and, therefore, an optimal solution could be obtained. The computational experiments compare the quality of results obtained by non-linear and linear models. The proposed technique does not increase the complexity of the initial non-linear problem.
Purpose: Retail is one of the most important sectors in modern life. Retail information systems support organizational processes in retail chains. Since such systems are very complex, they need to be structured in a framework based on actual business requirements for understanding the nature and sources of retail information systems. This article focuses on developing a business framework of architecture for a retail information system. This framework allows us to explore the main modules of retail information system. Design/methodology/approach: Research is based mainly on theoretical studies of retail information systems. Findings: As a result, we developed a framework that enables integration of processes in the following areas: assortment management, floor planning, shelf space allocation, pricing strategies, promotion, and store operations. Such solutions allow, among others, for optimization of available shelf space, reducing out-of-stocks, increasing employee productivity, enhance company profitability and improve customer satisfaction. Research limitations/implications: Because of the fact that in retail organizations, RIS modules are generally managed by different departments, some issues in implementation and data transfer could appear. Moreover, in the current framework, there is no artificial intelligence or the Internet of Things included. Originality/value: The results of the research can be used both by retail information systems developers and by retail managers in traditional and online retailing.
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