Evaluation of the solution for an optimal shelf allocation for SPA retailers

Abstract

This paper examines the accuracy of the solution based on a previous method for determining optimal display quantities in shelf space for SPA (Specialty store retailer of Private label Apparel) retailers. Our previous method proposes analytical solutions for particular cases where there is a gap between the sum of the original demands and the available shelf space. In this paper, we inspect the precision of the analytical solutions for general cases. By computing numerical solutions, we compare the results of the two methods. If the analytical solutions have higher accuracy for general cases, optimal display quantities can be obtained only with a small number of parameters.