Using Analytics to Enhance a Food Retailer's Shelf-Space Management

• Type: Article in International Scientific Journal
• Date: 2016

Authors

Bianchi Aguiar, T (Author) Other; Silva, E (Author) Other; Luis Guimarães (Author) FEUP; Maria Antónia Carravilla (Author) FEUP; José Fernando Oliveira (Author) FEUP; Amaral, JG (Author) Other; Liz, J (Author) Other; Lapela, S (Author) Other

Journal

Title: Interfaces

Vol. 46

Pages: 424-443

ISSN: 0092-2102

Publisher: Institute for Operations Research and the Management Sciences

Indexing

ISI Web of Knowledge - 15 Citations

Scopus - 18 Citations

Other information

Authenticus ID: P-00M-4PN

DOI: 10.1287/inte.2016.0859

Abstract (EN): This paper describes the results of our collaboration with the leading Portuguese food retailer to address the shelf-space planning problem of allocating products to shop-floor shelves. Our challenge was to introduce analytical methods into the shelf-space planning process to improve the return on space and automate a process heavily dependent on the experience of the retailer's space managers. This led to the creation of GAP, a decision support system that the company's space-management team uses daily. We developed a modular operations research approach that systematically applies mathematical programming models and heuristics to determine the best layout of products on the shelves. GAP combines its analytical strength with an ability to incorporate different types of merchandising rules to balance the tradeoff between optimization and customization.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 20