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A piecewise linearization for retail shelf space allocation problem and a local search heuristic

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Abstract

Retail shelf space allocation problem is well known in literature. In this paper, we make three contributions to retail shelf space allocation problem considering space elasticity (SSAPSE). First, we reformulate an existing nonlinear model for SSAPSE to an integer programming (IP) model using piecewise linearization. Second, we show that the linear programming relaxation of the proposed IP model produces tight upper bound. Third, we develop a heuristic that consistently produces near optimal solutions for randomly generated instances of problems with size (products, shelves) varying from (25, 5) to (200, 50) within a minute of CPU time.

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Authors and Affiliations

  1. Shailesh J. Mehta School of Management, Indian Institute of Technology-Bombay, Powai, Mumbai, India, 400076

    Hasmukh K. Gajjar & Gajendra K. Adil

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  1. Hasmukh K. Gajjar
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  2. Gajendra K. Adil
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Correspondence to Gajendra K. Adil.

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Gajjar, H.K., Adil, G.K. A piecewise linearization for retail shelf space allocation problem and a local search heuristic. Ann Oper Res 179, 149–167 (2010). https://doi.org/10.1007/s10479-008-0455-6

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