✦ LIBER ✦

DIRECT PRODUCT PROFITABILITY AND RETAIL SHELF-SPACE ALLOCATION MODELS

✍ Scribed by James H. Bookbinder; Feyrouz H. Zarour

Publisher: Wiley (John Wiley & Sons)
Year: 2001
Tongue: English
Weight: 386 KB
Volume: 22
Category: Article
ISSN: 0735-3766
DOI: 10.1002/j.2158-1592.2001.tb00010.x

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✦ Synopsis

Given an assortment of k products, a retailer must make an important decision on the percentage of space allocated to each of them. Optimization models for this problem have previously shown that an item's space should not simply be given in proportion to its sales or its gross margin (GM). Calculations of Direct Product Profitability (DPP) have improved upon the GM concept, but the present paper is the first (of which we are aware) to integrate the DPP approach into a shelf‐space optimization model.