JIEMS (Journal of Industrial Engineering and Management Systems)

Product allocation and product assortment have a significant influence on customer buying behavior. With limitation on shelf space, retailer must determine the customer buying behavior to maximize the profit for retailer. This research is focused on the products shelf space allocation based on the association between product categories and subcategories using data mining technique, multilevel association rules. Takes advantage of data transactions, 4 associations between categories and 11 associations between subcategories products were obtained. The degrees of activity relationship between categories from 4 associations obtained by Activity Relationship Chart method. The result, product allocation configuration based on the associations between product categories and degree of activity relationship is shown.

Keywords: Product Allocation, Data Mining, Multilevel Association Rules, Activity Relationship Chart

Amrouche, Nawel & Zaccour, Georges.(2007). Shelf space allocation of national and private brands. European Journal of Operational Research, 180, 648-663.

Berman, B & Evans, J.R. (2010). Retailing Management: A Strategic Approach. Prentice Hall.

Broekmeulen, Rob A.C.M., Van Donselaar, Karel H., Fransoo, Jan C., & Van Woensel, Tom.(2004). Excess shelf space in retail stores: An analytical model and empirical assessment. BETA Working Paper Series, 109.

Chen, Mu-Chen & Lin, Chia-Ping. (2007). A data mining approach to product assortment and shelf space allocation. Expert Systems with Application, 32, 976-986.

Costea, Adrian. (2006).The analysis of the telecommunications sector by the means of data mining techniques. Journal of Applied Quantitative Methods.

Cox, Roger & Brittain, Paul.(2000). Retail Mangement 4th Edition. London: Pearson Education Limited.

Garcia-Diaz, Alberto and Smith, J. MacGregor.(2008). Facilities Planning and Design. New Jersey: Pearson Education, Inc

Ghosh, Avijit.(1994). Retail Management (Second Edition). Orlando: The Dryden Press.

Hansen, Jared M., Raut, Sumit., & Swami, Sanjeev. (2010). Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic Approaches. Journal of Retailing, 86, 94-105.

Hariga, M.A., Al-Ahmari, A., & Mohamed, AR.A. (2007). A joint optimisation model for inventory replenishment, product assortment, shelf space and display area allocation decisions. European Journal of Operational Research, 181, 239-251.

Heizer, Jay and Render, Barry.(2008). Operations Management 9th ed. New Jersey: Pearson Education, Inc

Hwang, H., Choi, B., & Lee, G. (2009). A genetic algorithm approach to an integrated problem of shelf space design and item allocation. Computers & Industrial Engineering, 56, 809-820.

Hwang, H., Choi, B., & Lee, M. (2005). A model for shelf space allocation and inventory control considering location and inventory level effects on demand. International Journal of Production Economics, 97, 185-195.

Levy, Michael & Weitz, Barton.A.(2001). Retailing Management. New York: McGraw-Hill Companies.

Murray, C.C., Talukdar, D., & Gosavi, A.(2010). Joint Optimization of Product Price, Display Orientation and Shelf-Space Allocation in Retail Category Management. Journal of Retailing, 86, 125-136.

Nafari, Maryam & Shahrabi, Jamal. (2010). A temporal data mining approach for shelf-space allocation with consideration of product price. Expert Systems with Application, 37, 4066-4072.

Pandin, Marina L. (2009). Potret Bisnis Ritel di Indonesia : Pasar Modern. Economic Review, 215.

Sujana, Asep. Paradigma Baru dalam Modern Retail Management. Jakarta : WPA ReSULTANT.

Surjandari, Isti & Seruni, Annury C.(2005). Design of Product Placement Layout in Retail Shop Using Market Basket Analysis. Makara Teknologi, vol.9, 43-47.

Utami, C.Whidya.(2010). Manajemen Ritel: Strategi dan Implementasi Operasional Bisnis Ritel Modern di Indonesia. Jakarta: Salemba Empat.

Vercellis, Carlo.(2009). Business Intelligence: Data Mining and Optimization for Decision Making. West Sussex: John Wiley & Sons Ltd.

Wignjosoebroto, Sritomo.(2009). Tata Letak Pabrik dan Pemindahan Bahan. Surabaya: Guna Widya

WPA ReSULTANT.(2002). Overview of Retail Management.