Mathematical Model for Product Category Assortment and Shelf Space Allocation Within a Retail Trade System

The research presents a mathematical model for maximizing sales profits while maintaining shelf space restrictions from the retailer’s point of view. Purpose: to create a mathematical model for optimized product placement on the store shelves available. The proposed model takes into account the product categorization into groups and subgroups. In particular, products are grouped into vertical categories by type, as well as into horizontal ones by nested price. Discussion: the article examines the advantages and disadvantages of the proposed product display model. Practical significance: the development of such a model will help to improve the efficiency of using retail space, increase the availability of key products and, as a result, increase overall sales volumes. This study would be of great importance for retail chains.