Category profit optimization in retail industry: An application on haircare products

Burak Ayan; Alp Ustundag; Peiman Alipour Sarvari

doi:10.1109/ICKEA.2016.7803028

Category profit optimization in retail industry: An application on haircare products

Burak Ayan, Alp Ustundag, Peiman Alipour Sarvari

Department of Industrial Engineering

Istanbul Technical University

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

Based on empirical insights, quantitative decision support systems and the need for more advanced models reflecting category managers' actual decision problems is inevitable. The objective of this paper is to develop retail shelf space management using simulation based optimization. The focus of this research is therefore to examine retail shelf space problems and develop an optimization model to maximize the profitability of a retail haircare products category. The numerical optimization is performed on the category profitability. Exogenous Substitution Model which is one of the assortment models to calculate category profitability is used. The focus point of the model is to decide which product should be listed on the products substitutability. Besides stock levels of products should be calculated. Also, in this model for shelf allocating, an extra decision variable is calculating positions of products. The case study is covering the application of the proposed model in a supermarket.

Original language	English
Title of host publication	2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016
Publisher	Institute of Electrical and Electronics Engineers Inc.
Pages	245-250
Number of pages	6
ISBN (Electronic)	9781509034710
DOIs	https://doi.org/10.1109/ICKEA.2016.7803028
Publication status	Published - 30 Dec 2016
Event	2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016 - Singapore, Singapore Duration: 28 Sept 2016 → 30 Sept 2016

Publication series

Name	2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016

Conference

Conference	2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016
Country/Territory	Singapore
City	Singapore
Period	28/09/16 → 30/09/16

Bibliographical note

Publisher Copyright:
© 2016 IEEE.

Keywords

assortment models
category management
exogenous substitution model
retail industry
shelf space

Access to Document

10.1109/ICKEA.2016.7803028

Cite this

Ayan, B., Ustundag, A., & Sarvari, P. A. (2016). Category profit optimization in retail industry: An application on haircare products. In 2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016 (pp. 245-250). Article 7803028 (2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/ICKEA.2016.7803028

Ayan, Burak ; Ustundag, Alp ; Sarvari, Peiman Alipour. / Category profit optimization in retail industry : An application on haircare products. 2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016. Institute of Electrical and Electronics Engineers Inc., 2016. pp. 245-250 (2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016).

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abstract = "Based on empirical insights, quantitative decision support systems and the need for more advanced models reflecting category managers' actual decision problems is inevitable. The objective of this paper is to develop retail shelf space management using simulation based optimization. The focus of this research is therefore to examine retail shelf space problems and develop an optimization model to maximize the profitability of a retail haircare products category. The numerical optimization is performed on the category profitability. Exogenous Substitution Model which is one of the assortment models to calculate category profitability is used. The focus point of the model is to decide which product should be listed on the products substitutability. Besides stock levels of products should be calculated. Also, in this model for shelf allocating, an extra decision variable is calculating positions of products. The case study is covering the application of the proposed model in a supermarket.",

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Ayan, B, Ustundag, A & Sarvari, PA 2016, Category profit optimization in retail industry: An application on haircare products. in 2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016., 7803028, 2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016, Institute of Electrical and Electronics Engineers Inc., pp. 245-250, 2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016, Singapore, Singapore, 28/09/16. https://doi.org/10.1109/ICKEA.2016.7803028

Category profit optimization in retail industry: An application on haircare products. / Ayan, Burak; Ustundag, Alp; Sarvari, Peiman Alipour.
2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016. Institute of Electrical and Electronics Engineers Inc., 2016. p. 245-250 7803028 (2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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Ayan B, Ustundag A, Sarvari PA. Category profit optimization in retail industry: An application on haircare products. In 2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016. Institute of Electrical and Electronics Engineers Inc. 2016. p. 245-250. 7803028. (2016 IEEE International Conference on Knowledge Engineering and Applications, ICKEA 2016). doi: 10.1109/ICKEA.2016.7803028

Category profit optimization in retail industry: An application on haircare products

Abstract

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Keywords

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