An ILP formulation is proposed for Shelf space re-allocation problem.Out-of-stock data are collected from the Shelf Detector System in real time.Space elastic demand function is linked with real-time statistical data.Tests performed on real, random and large instances. A planogram is a detailed visual map that establishes product positions over a shelf in a retail store. It is designed to support an innovative merchandising approach, to increase sales and profits, to supply the best location of a product for suppliers and to better manage the shelves. Product selection and the shelf space reserved to each product is a central activity for retailers and Shelf Out of Stock (SOOS) events are often strongly related to planogram design. In this paper we present a solution to optimally re-allocate shelf space to minimize Out of Stock (OOS) events. The approach uses SOOS data coming in real time from a sensor network technology, named Shelf Detector System, and an Integer Linear Programming model that integrates a space elastic demand function. Experimental results, based on a real scenario in the diaper category in Belgium, have proved that the system can efficiently calculate a proper solution able to re-allocate space and reduce OOS events.

Shelf space re-allocation for out of stock reduction / Frontoni, Emanuele; Marinelli, Fabrizio; Rosetti, Roberto; Zingaretti, Primo. - In: COMPUTERS & INDUSTRIAL ENGINEERING. - ISSN 0360-8352. - STAMPA. - 106:(2017), pp. 32-40. [10.1016/j.cie.2017.01.021]

Shelf space re-allocation for out of stock reduction

FRONTONI, EMANUELE;MARINELLI, Fabrizio;ROSETTI, ROBERTO;ZINGARETTI, PRIMO
2017-01-01

Abstract

An ILP formulation is proposed for Shelf space re-allocation problem.Out-of-stock data are collected from the Shelf Detector System in real time.Space elastic demand function is linked with real-time statistical data.Tests performed on real, random and large instances. A planogram is a detailed visual map that establishes product positions over a shelf in a retail store. It is designed to support an innovative merchandising approach, to increase sales and profits, to supply the best location of a product for suppliers and to better manage the shelves. Product selection and the shelf space reserved to each product is a central activity for retailers and Shelf Out of Stock (SOOS) events are often strongly related to planogram design. In this paper we present a solution to optimally re-allocate shelf space to minimize Out of Stock (OOS) events. The approach uses SOOS data coming in real time from a sensor network technology, named Shelf Detector System, and an Integer Linear Programming model that integrates a space elastic demand function. Experimental results, based on a real scenario in the diaper category in Belgium, have proved that the system can efficiently calculate a proper solution able to re-allocate space and reduce OOS events.
2017
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11566/246103
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