OPTIMIZATION BASED ON FLOWER CUTTING HEURISTICS FOR SPACE ALLOCATION PROBLEM
DOI:
https://doi.org/10.15588/1607-3274-2025-2-17Keywords:
heuristics, shelf space allocation, knapsack problem, decision-making/processAbstract
Context. This research discusses the shelf space allocation problem with vertical and horizontal product categorization, which also includes the products of general and brand assortment as well as products with different storage conditions stored on different shelves and incompatible products stored on the same shelf but no nearby.
Objective. The goal is to maximize the profit, product movement, or sales after allocating products on store shelves, defining the shelf for the product and the number of stock-keeping units it has.
Method. The research proposes the two variants of heuristics with different sorting rules inside utilized as an approach to solving the retail shelf space allocation problem with horizontal and vertical product categorization. It also covers the application of 13 developed steering parameters dedicated to instances of different sizes, which allows to obtain cost-effective solutions of high quality.
Results. The results obtained by heuristics were compared to the optimal solutions given by the commercial CPLEX solver. The effectiveness of the proposed heuristics and the suitability of the control settings were demonstrated by their ability to significantly reduce the number of possible solutions while still achieving the desired outcomes. Both heuristics consistently produced solutions with a quality surpassing 99.80% for heuristic H1 and 99.98% for heuristic H2. Heuristics H1 found 12 optimal solutions, and heuristics H2 found 14 optimal solutions among 15 test instances – highlighting their reliability and efficiency.
Conclusions. The specifics of the investigated model can be used by supermarkets, apparel stores, and electronics retailers. By following the explained heuristics stages and the methods of parameter adjustments, the distributor can systematically develop, refine, and deploy a heuristic algorithm that effectively addresses the shelf space allocation problems at hand while being robust and scalable.
References
Czerniachowska K. A genetic algorithm for the retail shelf space allocation problem with virtual segments, OPSEARCH, 2022, Vol. 59, № 1, pp. 364–412. DOI: 10.1007/s12597-021-00551-3.
Czerniachowska K., Lutoslawski K., Fojcik M. Heuristics for shelf space allocation problem with vertical and horizontal product categorization, Procedia Computer Science, 2022, Vol. 207, pp. 195–204. DOI: 10.1016/j.procs.2022.09.052.
Czerniachowska K. The Method of Finding High-Runner Products in the Assortment, Informatyka w zarządzaniu, 2023, pp. 52–65. DOI: 10.15611/2023.51.0.03.
Drèze X., Hoch S. J., Purk M. E. Shelf management and space elasticity, Journal of Retailing, 1994, Vol. 70, № 4, pp. 301–326. DOI: 10.1016/0022-4359(94)90002-7.
Chandon P., Hutchinson J. W., Bradlow E. T. et al. Does instore marketing work? Effects of the number and position of shelf facings on brand attention and evaluation at the point of purchase, Journal of Marketing, 2009, Vol. 73, № 6, pp. 1–17. DOI: 10.1509/jmkg.73.6.1.
Hwang H., Choi B., Lee M. J. A model for shelf space allocation and inventory control considering location and inventory level effects on demand, International Journal of Production Economics, 2005, Vol. 97, № 2, pp. 185–195. DOI: 10.1016/j.ijpe.2004.07.003.
Hariga M. A. Al-Ahmari A., Mohamed A. R. A. A joint optimisation model for inventory replenishment, product assortment, shelf space and display area allocation decisions, European Journal of Operational Research, 2007,Vol. 181, № 1, pp. 239–251. DOI: 10.1016/j.ejor.2006.06.025.
Hwang H., Choi B., Lee G. A genetic algorithm approach to an integrated problem of shelf space design and item allocation, Computers and Industrial Engineering, 2009, Vol. 56, № 3, pp. 809–820. DOI: 10.1016/j.cie.2008.09.012.
Hübner A. H., Kuhn H. Retail category management: Stateof-the-art review of quantitative research and software applications in assortment and shelf space management, Omega, 2012, Vol. 40, № 2, pp. 199–209. DOI: 10.1016/j.omega.2011.05.008.
Irion J., Lu J. C., Al-Khayyal F. et al. //A piecewise linearization framework for retail shelf space management models, European Journal of Operational Research, 2012, Vol. 222, № 1. DOI: 10.1016/j.ejor.2012.04.021.
Botsali A. R., Peters B. A. A network based layout design model for retail stores, Industrial Engineering Conference, Atlanta, GA, 2005.
Zhang W., Rajaram K. Managing limited retail space for basic products: Space sharing vs. space dedication, European Journal of Operational Research, 2017, Vol. 263, № 3, pp. 768–781. DOI: 10.1016/j.ejor.2017.05.045.
Flamand T., Ghoniem A., Maddah B. Promoting impulse buying by allocating retail shelf space to grouped product categories, Journal of the Operational Research Society, 2016, Vol. 67, № 7, pp. 953–969. DOI: 10.1057/jors.2015.120.
Ozcan T., Esnaf S. A Discrete Constrained Optimization Using Genetic Algorithms for A Bookstore Layout, International Journal of Computational Intelligence Systems, 2013, Vol. 6, № 2. DOI: 10.1080/18756891.2013.768447.
Oestreicher-Singer G., Libai B., Sivan L. et al. The network value of products, Journal of Marketing, 2013, Vol. 77, № 3, pp. 1–14. DOI: 10.1509/jm.11.0400.
Varley R. Retail product management: Buying and merchandising. Routledge, 2005, Second edition. DOI: 10.4324/9780203358603.
Anderson E. E., Amato H. N. Mathematical model for simultaneously determining the optimal brand-collection and display-area allocation, Operations Research, 1974, Vol. 22, № 1. DOI: 10.1287/opre.22.1.13.
Hansen P., Heinsbroek H. Product selection and space allocation in supermarkets, European Journal of Operational Research, 1979, Vol. 3, № 6, pp. 474–484. DOI: 10.1016/0377-2217(79)90030-4.
Tsai C.-Y., Huang S.-H. Integrating Product Association Rules and Customer Moving Sequential Patterns for Product- to-Shelf Optimization, International Journal of Machine Learning and Computing, 2015, Vol. 5, № 5, pp. 344–352. DOI: 10.7763/ijmlc.2015.v5.532.
Czerniachowska K., Subbotin S. Merchandising rules for shelf space allocation with product categorization and vertical positioning, Informatyka Ekonomiczna, 2021, Vol. 2021, № 4, pp. 34–59. DOI: 10.15611/ie.2021.1.02.
Kpossa M. R., Lick E. Visual merchandising of pastries in foodscapes: The influence of plate colours on consumers’ flavour expectations and perceptions, Journal of Retailing and Consumer Services, 2020, Vol. 52. DOI: 10.1016/j.jretconser.2018.10.001.
Czerniachowska K. Merchandising rules for shelf space allocation with horizontal and vertical positions, Informatyka Ekonomiczna, 2021, Vol. 2021, № 4, pp. 9–33. DOI: 10.15611/ie.2021.1.01.
Ali Soomro D. Y., Abbas Kaimkhani S., Iqbal J. Effect of Visual Merchandising Elements of Retail Store on Consumer Attention, Journal of Business Strategies, 2017, Vol. 11, № 1. DOI: 10.29270/jbs.11.1(17).002
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 K. S. Czerniachowska, S. A. Subbotin
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Creative Commons Licensing Notifications in the Copyright Notices
The journal allows the authors to hold the copyright without restrictions and to retain publishing rights without restrictions.
The journal allows readers to read, download, copy, distribute, print, search, or link to the full texts of its articles.
The journal allows to reuse and remixing of its content, in accordance with a Creative Commons license СС BY -SA.
Authors who publish with this journal agree to the following terms:
-
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License CC BY-SA that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
-
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
-
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
