A fuzzy goal programming approach for mid-term assortment planning in supermarkets

We develop a fuzzy mixed integer non-linear goal programming model for the mid-term assortment planning of supermarkets in which three conflicting objectives namely profitability, customer service, and space utilization are incorporated. The items and brands in a supermarket compete to obtain more space and better shelf level. This model offers different service levels to loyal and disloyal customers, applies joint replenishment policy, and accounts for the holding time limitation of perishable items. We propose a fuzzy approach due to the imprecise nature of the goals’ target levels and priorities as well as critical data. A heuristic method inspiring by the problem-specific rules is developed to solve this complex model approximately within a reasonable time. Finally, the proposed approach is validated through several numerical examples and results are reported.

► Integrating the shelf space allocation, replenishment planning and inventory control sub-problems into a unified framework. ► Proposing a fuzzy goal programming for mid-term retail assortment planning problem. ► Modeling customers’ loyalty, joint replenishment policy and items’ perishability mathematically. ► Developing an efficient heuristic solution method based upon the problem-specific rules.