Method and System for Optimizing Store Space and Item Layout

Abstract

A method in a computer system for generating an efficient item assortment associated with a plurality of items includes obtaining choice set data specifying a multiplicity of choice sets associated with the plurality of items, where each of the multiplicity of choice sets includes several of the plurality of items, at least some of which are mutually substitutable, obtaining item interaction data descriptive of substitutions between pairs of items in each of the multiplicity of choice sets, obtaining a set of benefit metrics associated with the plurality of items, obtaining a constraint parameter associated with the item assortment, and generating an item selection based at least on the item interaction data, the set of benefit metrics, and the constraint parameter, where the item selection identifies at least one of the plurality of items selected for inclusion in the item assortment.

Description

FIELD AND BACKGROUND OF THE DISCLOSURE[0001]1. Field of the Disclosure[0002]This disclosure relates generally to optimizing store space and, in particular, to developing efficient assortment and merchandizing fixture layout for a plurality of items.[0003]2. Background Description[0004]To increase profits and improve customer experience, retailers often develop diagrams that specify where and in what quantity items should be placed on shelves, in slots of vending machine, or on a sales floor. These diagrams are known as planograms or POGs. In general, the development of a planogram includes generating a selection of items for inclusion in a planogram (known as product assortment), and determining relative placement of these items within the planogram (known as item layout). While a relatively effective planogram for two or three items may be generated manually by simply trying various combinations and relying on subjective judgment, developing a planogram for tens or hundreds of item...

AI Technical Summary

Benefits of technology

The patent describes a computer system and method for generating an efficient assortment of items in a retail area. The system receives data about the items, such as their physical parameters and profitability. It also receives information about the layout of the area and the placement of items on shelves. The system uses a combination of linear programming and simulation techniques to optimize the overall expected profit. The system can also include a layout optimizer to improve the layout of the assortment. The technical effect of the patent is to provide a computer system that can efficiently optimize the placement of items in a retail area to maximize sales and minimize costs.

Problems solved by technology

While a relatively effective planogram for two or three items may be generated manually by simply trying various combinations and relying on subjective judgment, developing a planogram for tens or hundreds of items is a highly complicated task.

Generally speaking, planogram development is difficult due to numerous factors that affect the profitability of a particular arrangement of items.

For example, shelf or floor space is typically limited, items usually have different physical dimensions, shelves often vary in width and depth, the sale of different items generates different profits, etc.

Further, when a customer cannot find the desired item on the shelf, he or she may purchase a substitute, while another customer will not accept a substitute and will not make a purchase at all.

For these reasons, developing an efficient planogram that satisfies every relevant rule, generates a high profit, and addresses customers' needs remains very complicated.

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