The allocation of shelf space over article groups

Abstract:

In this paper we consider, optimal allocation of shelf space over article groups by a mass retailer. To this end the general structure of a number of mathematical marketing models is developed. These "risk-evaluation" models allocate shelf space over article groups and account for the risk which is inherent in the choice of article groups. The models are based on models which are used in financial management to analyse and select portfolios. A couple of these models are tested and some future directions of research in this area are indicated.

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