Joint shelf design and shelf space allocation problem for retailers

Effective design of planograms in a retail store can improve the visual representation products on shelves. Existing approaches, however, assume that shelf length and height are fixed, which result unused space planogram suboptimal assignment product facings, both resulting reduced revenue for retailer. To address this real-world challenge, we introduce joint allocation (JSD-SSA) problem, determines optimal along with placement considering family constraints. We propose decomposition-based approach, first partitions area families then allocates to partitioned area. Our novel hybrid approach relies Particle Swarm Optimization partitioning Constraint Programming assignment. also two metrics; one measure variation shapes within between families, another tightness planogram. Experiments indicate shorter lengths increase retailers’ profit by up 37% depending product-family shape variation. Higher within-family higher revenue. Additionally, if dimensions share common factor or multiple, more compact be designed, turn reducing increasing retailer's profit. is general enough handle gondola, peg, bin, mixed type shelving typically found stores.