Browsing by Author "Lotter, Janneke"
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- ItemDecision support for fresh produce replenishment order schedules in a retail outlet(Stellenbosch : Stellenbosch University, 2017-03) Lotter, Janneke; Van Vuuren, J. H.; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.ENGLISH ABSTRACT: Retailers are faced with complex periodic decisions related to replenishment orders for fresh produce and the allocation of shelf space to these products. The complexity of these decisions may be attributed to the short shelf lives of fresh produce, a variety of operational constraints and a limitation on the amount of shelf space available. Since retailers may gain a competitive advantage through the e cient management of shelf space in their fresh produce departments, an objective methodology is required to provide decision support for fresh produce replenishment order decisions. This is especially important for retail outlets with little or no backroom storage space for their fresh produce, where all product units that arrive at the store have to be displayed on the shelves immediately. A mathematical model is proposed in this thesis in support of the aforementioned fresh produce replenishment order decisions of retailers. The aim of the model is to satisfy forecasted product demand over a prescribed decision period as closely as possible, while maximising pro t and minimising product waste | all subject to a xed amount of available shelf space. Two solution approaches are designed for solving this model which takes the form of a mixed integer programming problem. An exact solution approach is implemented in CPLEX for solving the model in the context of small, hypothetical problem instances. Due to the computational complexity of the exact solution approach, a (metaheuristic) solution approach, based on the method of simulated annealing, is also established by which larger, realistic instances of the model can be solved much quicker, albeit approximately. The mathematical model and the approximate solution approach are embedded in a computerised decision support system concept demonstrator so as to provide managers of retail outlets with a practical tool able to recommend fresh produce replenishment order schedules in line with the aforementioned retail objectives. A real-life case study is performed, involving 72 products in the ambient section of the fresh produce department within a retail outlet in Grassy Park, Cape Town, so as to demonstrate the practicality of the decision support system and illustrate the high quality of its recommendations. Upon comparing the replenishment order recommendation of the system with that actually employed at the outlet, it is found that the system yields substantially superior results.