A genetic algorithm approach to an integrated problem of shelf space design and item allocation

Shelf space on which products are displayed is one of the most important resources in retail environment. This paper addresses problems of retailers who sell various brands of items through displaying on shelf space. We develop an integrated mathematical model for the shelf space design and item allocation problem with the objective of maximizing the retailer’s profit. To solve the model, genetic algorithms are proposed for two types of shelf space configurations: (1) slicing structure produced by ‘guillotine’ type cuts and (2) slicing structure by horizontal cuts only. The validity of the model is illustrated with example problems.