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http://dx.doi.org/10.11627/jkise.2014.37.1.141

Solutions for the Shelf Space Allocation and Inventory Replenishment of Convenience Stores with Product Substitution  

Yoon, Sung-Joon (Department of Industrial and Management Systems Engineering, College of Engineering, Kyung Hee University)
Park, Yang-Byung (Department of Industrial and Management Systems Engineering, College of Engineering, Kyung Hee University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.37, no.1, 2014 , pp. 141-150 More about this Journal
Abstract
Due to their accessibility and 24-hr availability, convenience stores are an integral part of daily lives. Because they sell a limited number of products and have small shelf space, shelf space allocation and inventory replenishment are important considerations for inventory management that critically affect profit. In this paper, we propose five solutions for the vendor-managed inventory problem of convenience stores that maximize profit while considering stock-out-based product substitutions. The performance of the proposed solutions is evaluated via simulation to reflect the demand uncertainty and marketing activity.
Keywords
Convenience Stores; Shelf Space Allocation; Vendor-Managed Inventory Problem; Product Substitution; Simulation;
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