Title :
A Joint Decision Model of Variants Selection, Shelf-space Allocation and Inventory Control
Author :
Gao, J.J. ; Yu, L.R.
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;
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
DOI :
10.1109/SOLI.2007.4383939
