A genetic algorithm approach to an integrated problem of shelf space design and item allocation

Authors:
Hark Hwang;Bum Choi;Grimi Lee
Affiliations:
Department of Industrial Engineering, Korea Advanced Institute of Science and Technology, 373-1 Kusong-dong, Yusong-gu, Daejon 305-701, Republic of Korea;Global Operations Team, LCD Business, Samsung Electronics, Republic of Korea;SOC Institute, System LSI Business Unit, Semiconductor Group, Samsung Electronics, Republic of Korea
Venue:
Computers and Industrial Engineering
Year:
2009

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Abstract

Shelf space on which products are displayed is one of the most important resources in retail environment. This paper addresses problems of retailers who sell various brands of items through displaying on shelf space. We develop an integrated mathematical model for the shelf space design and item allocation problem with the objective of maximizing the retailer's profit. To solve the model, genetic algorithms are proposed for two types of shelf space configurations: (1) slicing structure produced by 'guillotine' type cuts and (2) slicing structure by horizontal cuts only. The validity of the model is illustrated with example problems.