SHELF SPACE ALLOCATION PROBLEM (SSAP) IN THE RETAIL INDUSTRY: A SYSTEMATIC LITERATURE REVIEW

Abstract

This article presents a comprehensive analysis of the Shelf Space Allocation Problem (SSAP) in the context of the evolving retail industry. The significance of this problem lies in its impact on consumer behavior, sales revenue, and overall shop profitability, with a particular focus on enhancing store performance through the optimization of shelf item placement. This review systematically integrates prior research by conducting a rigorous analysis of different approaches to SSAP, including mathematical models, heuristic strategies, and data-driven procedures. This study aims to synthesize key findings, identify knowledge gaps, and propose avenues for future research by compiling and evaluating several methodologies. This evaluation aims to acquire a thorough understanding of the various attributes of SSAP and their implications for retail operations. The primary data analysis examined a thorough selection of articles obtained through advanced search techniques on the Scopus and Mendeley databases. A total of 25 articles were included in the analysis. This article aims to provide a valuable resource for improving decision-making processes in the allocation of retail shelf space. It achieves this by compiling information on the main factors, challenges, and optimization techniques related to SSAP. The article's results offer valuable insights for supply chain management professionals and retailers. The proposition suggests that power dynamics within the supply chain influence the allocation of display space costs between suppliers and retailers. This article successfully identified optimal solutions across ten distinct scenarios and achieved an average profit ratio of over 99% by implementing various effective methodologies to address intricate optimization issues. Ultimately, this article contributes to enhancing retail performance, customer satisfaction, and strategic planning in the dynamic retail industry. This research highlights the significance of implementing adaptive and context-aware tactics to accommodate changing consumer preferences and market dynamics. Accordingly, it can enhance the effectiveness of shelf space allocation strategies and promote a competitive edge within the retail industry.