Hierarchical Shelf Space Allocation Model Characteristics in Stores and Warehouses

Efficient warehouse logistics is fundamental to maintaining a well-stocked product range on store shelves and in warehouses. A reliable warehouse management system enables timely replenishment and avoids stockouts of popular products. Furthermore, optimization of warehouse processes helps reduce costs and improve overall retail efficiency. Purpose: to present and analyze a mathematical model for product display with hierarchical categorization on warehouse shelves and retail store shelves. Maximizing shelf profit is the objective function. Results: the following constraint categories are formulated: shelf constraints, multi-shelf placement constraints, product constraints, position constraints, and category and subcategory constraints. The characteristics, advantages and disadvantages of hierarchical categorization of products are considered. A comparison is made between hierarchical product categorization in warehouses and traditional stores. Practical significance: optimal shelf placement is crucial for warehouse logistics and retail sales, as it helps improve order picking, delivery, and shelf visibility. Understanding these aspects allows warehouses and distributors to effectively manage inventory, increase profits, and reduce costs, ensuring high speed and accuracy of order fulfillment and increasing purchase frequency.