A New Hybrid Optimization Algorithm for the Optimal Allocation of Goods in Shop Shelves

Abstract

In retail operation management, shelf space allocation problem is an important problem that affects profitability. Various researches have demonstrated that the shelf space allocation of a product affects that product's sales. The decision that how much of which product, where and when should be placed on shelves is a critical issue in retail operation management. In this paper a new hybrid meta-heuristic algorithm based on forest optimization algorithm (FOA) and simulated annulling (SA) is presented to address the shop shelf allocation problem. To apply FOA for shelf space allocation problem, the basic arithmetic operators of FOA have been modified regarding the characteristics of this problem and FOA is improved by SA. Results obtained from an expensive experimental phase show the better performance of the proposed algorithm in comparison with other presented algorithm from the literature. Also, results show the suitability and benefits of the proposed algorithm in finding high-quality solutions and robustness.