Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Solutions for the Shelf Space Allocation and Inventory Replenishment of Convenience Stores with Product Substitution

제품대체를 고려한 편의점의 진열공간 할당과 재고보충을 위한 해법

  • Yoon, Sung-Joon (Department of Industrial and Management Systems Engineering, College of Engineering, Kyung Hee University) ;
  • Park, Yang-Byung (Department of Industrial and Management Systems Engineering, College of Engineering, Kyung Hee University)
  • 윤성준 (경희대학교 공과대학 산업경영공학과) ;
  • 박양병 (경희대학교 공과대학 산업경영공학과)
  • Received : 2014.01.22
  • Accepted : 2014.03.11
  • Published : 2014.03.31
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Abstract

Due to their accessibility and 24-hr availability, convenience stores are an integral part of daily lives. Because they sell a limited number of products and have small shelf space, shelf space allocation and inventory replenishment are important considerations for inventory management that critically affect profit. In this paper, we propose five solutions for the vendor-managed inventory problem of convenience stores that maximize profit while considering stock-out-based product substitutions. The performance of the proposed solutions is evaluated via simulation to reflect the demand uncertainty and marketing activity.

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References

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