Optimal grocery store layout to maximize impulsive item revenue
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This research explores a brand new application for layout design. Specifically, it aims at developing a robust layout for a grocery or convenience store which maximizes the impulsive item revenue of the store. The goal of this research is to develop a robust layout which will maximize the "impulsive" item revenue of the store. A two stage heuristic is proposed. In the first stage we generate an initial layout using ideas from well studied p-dispersion problem to spread "must-have" items in the store. This initial layout is improved in the second stage using a simulated annealing based heuristic. An example is presented to illustrate concepts developed in the thesis, and extensive computational tests are performed using factorial based design of experiments. Our conclusions are: (i) p -dispersion based heuristic gives an excellent starting solution; (ii) significantly better layouts are obtained for the case where more "must-have" items are shared across the customer categories; (iii) simulated annealing based heuristic improves the initial solution provided by the p -dispersion method by an average of 7 percent.