Issue: 2022/Vol.32/No.4, Pages 33-56
A LINEARISATION APPROACH TO SOLVING A NON-LINEAR SHELF SPACE ALLOCATION PROBLEM WITH MULTI-ORIENTED CAPPING IN RETAIL STORE AND DISTRIBUTION CENTRE
Kateryna Czerniachowska , Marcin Hernes , Krzysztof Lutosławski
Cite as: K. Czerniachowska, M. Hernes, K. Lutosławski. A linearisation approach to solving a non-linear shelf space allocation problem with multi-oriented capping in retail store and distribution centre. Operations Research and Decisions 2022: 32(4), 33-56. DOI 10.37190/ord220403
Shelf space is one of the essential resources in logistic decisions. Order picking is the most time-consuming and labour-intensive of the distribution processes in distribution centres. Current research investigates the allocation of shelf space on a rack in a distribution centre and a retail store. The retail store, as well as the distribution centre, offers a large number of shelf storage locations. In this research, multi-orientated capping as a product of the rack allocation method is investigated. Capping allows additional product items to be placed on the rack. We show the linearisation technique with the help of which the models with capping could be linearised and, therefore, an optimal solution could be obtained. The computational experiments compare the quality of results obtained by non-linear and linear models. The proposed technique does not increase the complexity of the initial non-linear problem.
Keywords: linear programming, shelf space allocation, retail store, distribution centre, order picking
Received: 06 June 2022 Accepted: 12 December 2022
Published online: 8 February 2023