In this paper, we consider a single retailer who sells multiple products subject to decay, and that implements coordinated inventory replenishments among them. The overall available surface at the retailer is limited and is partitioned into two areas: the backroom facility and the display area. The demand rate of each product is a function of displayed quantity and location, and it also depends on the cross-elasticity among items. The objective is to find the product assortment, the replenishment policy of each product, the quantity to be displayed, and the surfaces assigned to the backroom and display areas that maximize the total profit per time unit. We develop the mathematical model and formulate the optimization problem. Finally, we investigate the model response by means of numerical experiments considering several problem instances. Copyright © 2022 IFAC.

Optimizing product assortment, joint replenishments, and storage capacity allocation in a deteriorating inventory system / Castellano, D.; Gallo, M.; Grassi, A.; Santillo, L. C.. - 55:10(2022), pp. 2695-2700. (Intervento presentato al convegno 10th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2022 tenutosi a France, Nantes nel 2022) [10.1016/j.ifacol.2022.10.117].

### Optimizing product assortment, joint replenishments, and storage capacity allocation in a deteriorating inventory system

#### Abstract

In this paper, we consider a single retailer who sells multiple products subject to decay, and that implements coordinated inventory replenishments among them. The overall available surface at the retailer is limited and is partitioned into two areas: the backroom facility and the display area. The demand rate of each product is a function of displayed quantity and location, and it also depends on the cross-elasticity among items. The objective is to find the product assortment, the replenishment policy of each product, the quantity to be displayed, and the surfaces assigned to the backroom and display areas that maximize the total profit per time unit. We develop the mathematical model and formulate the optimization problem. Finally, we investigate the model response by means of numerical experiments considering several problem instances. Copyright © 2022 IFAC.
##### Scheda breve Scheda completa Scheda completa (DC)
2022
10th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2022
France, Nantes
2022
55
2695
2700
Castellano, D.; Gallo, M.; Grassi, A.; Santillo, L. C.
Optimizing product assortment, joint replenishments, and storage capacity allocation in a deteriorating inventory system / Castellano, D.; Gallo, M.; Grassi, A.; Santillo, L. C.. - 55:10(2022), pp. 2695-2700. (Intervento presentato al convegno 10th IFAC Conference on Manufacturing Modelling, Management and Control, MIM 2022 tenutosi a France, Nantes nel 2022) [10.1016/j.ifacol.2022.10.117].
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Utilizza questo identificativo per citare o creare un link a questo documento: `https://hdl.handle.net/11380/1318108`
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