A Joint Decision Model of Variants Selection, Shelf-space Allocation and Inventory Control

Author

Gao, J.J. ; Yu, L.R.

fYear

2007

fDate

27-29 Aug. 2007

Firstpage

1

Lastpage

5

Abstract

The problem of jointly determining product variety (PV), shelf-space allocation (SSA) and inventory control (IC) for different items of a certain brand product is studied in this paper. Based on formulating demand rate as a function of time, promotion and shelf-space, a joint decision model of variants selection, shelf-space allocation and inventory control is established to maximize total profits, subject to given stocking space constraints and service level constraints. Also a numerical solving algorithm for this model is given. Finally, numerical results and conclusions are presented, which show that this joint decision model could evidently increase 115 percent profit higher than the policies applied by retailer before.

Keywords

Business; Costs; Frequency; Integrated circuit modeling; Inventory control; Inventory management; Marketing and sales; Stochastic processes; Supply chain management; Supply chains; Variants Selection; inventory control; joint decision model; product variety; shelf-space allocation;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Operations and Logistics, and Informatics, 2007. SOLI 2007. IEEE International Conference on

Conference_Location

Philadelphia, PA, USA

Print_ISBN

978-1-4244-1118-4

Electronic_ISBN

978-1-4244-1118-4

Type

conf

DOI

10.1109/SOLI.2007.4383939

Filename

4383939