Shelf optimization

The Space Management ( english space management ) is used in trade to in stores products to be arranged in amount and placement to a maximum revenue earned.

basis

The following three parameters form the basis:

• Sales contribution ,
• Contribution margin ,
• Buying habits .

aims

Shelf optimization ensures that branded items are placed at eye level and easily accessible in supermarkets , including products that have a high profit margin , while own products and cheap goods are placed less conspicuously on the lower levels. The forecast demand is also taken into account in order to optimally adjust the inventory on the shelf and to avoid short sales. Assortment relationships and visual criteria are also taken into account. Furthermore, the shelf optimization should help to avoid shelf gaps .

Areas

Overall, therefore, shelf optimization is divided into three areas

• Range optimization ,
• Inventory optimization,
• Space optimization.

The planning of the shelf layout in large chains and their suppliers is often done with the help of special planogram software, which is often based on algorithms of linear optimization and uses databases and data warehouse functionalities. Goods dividers are used to subdivide shelves.

literature

• Thomas Vogler: Transaction cost theory-based study of space management in supermarkets . Dissertation, University of Freiburg im Breisgau 2006 ( full text )