Urban (1998): An inventory-theoretic approach to product assortment and shelf-space allocation:

Journal Analysis
This article focuses on how to generalize and integrate existing inventory-control models,

product assortment models, and shelf-space allocation models. The first model signifies the

importance of the Economic Order Quantity, Inventory Production Quantity, and the ABC

analysis. The idea that goes on this regard is the optimization of the supply chain both the two

manufacturers- the wholesaler and the retailer per se. It is therefore having a parameters in which

the whole idea is look at the inventory processes as an instance of business essentials.

Moreover, the turning point of this article is on investigation of the product assortment

and shelf-paced allocation in a constraint environment. The method used is heuristic approach

and algorithm to come up with the solution. The best practice of inventory management is to see

to it that the product being stored is well monitored in accordance to the demand brought by the

interest of an organization and of course, to the customers. The entire allocation of inventory

control is to look at also on the environment wherein there is a good relationship for them to

identify the cause of multi-dimensional approach.

In conclusion, retailers benefit from the optimum allocation of products into shelves in

two ways: they reduce the costs of shelf replacement and inventory, and increase sales. This

entails something on increasing the display area on the shelf wherein there should be a proper

determination on the process of reducing cost and maintaining at the same time the sales. It is

also an important to note that sales are more given in attention as it neutralizes the product and

the buyers. In the end, the algorithm is use based on the result which has the higher aftermath

after all.