Premium
Allocation of shelf space: A case study of refrigerated juice products in grocery stores
Author(s) -
Brown Mark G.,
Lee JongYing
Publication year - 1996
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/(sici)1520-6297(199603/04)12:2<113::aid-agr1>3.0.co;2-5
Subject(s) - orange juice , profit (economics) , shelf life , operations research , computer science , business , econometrics , food science , mathematics , economics , microeconomics , chemistry
The results of this study show how shelf space can be allocated between products in a profit maximizing framework. Cross sectional data were analyzed to determine whether orange juice might have less than optimal shelf space. Estimates of product demands indicate that cross‐facings‐per‐store effects were insignificant; and, hence, only own‐facings‐per‐store effects were used in the analysis. Results indicate that orange juice's actual share of department facings of 51% is less than its optimal share of department facings that range from 80 to 61.6% based on alternative markup assumptions. © 1996 John Wiley & Sons, Inc.