Listing, Facing and Pricing in Consumer Goods Industries

Managing limited shelf space is a core decision in retail as the increase of product variety is in conflict with limited shelf space and operational costs. We develop optimization models, which support to define the right products to offer ("listing"), the right space to allocate ("facing") and the right price to set for each product ("pricing") in consumer goods industries. Consumer decisions are integrated part of our models.

We study retail management problems in which category profit is a composite function of product prices, allocated shelf space, consumer-driven demand substitution, and replenishment constraints under limited shelf space. We develop practical solutions for retail category specific problem sizes.