Retail space design considering revenue and adjacencies using a racetrack aisle network

Abstract

In this article, a model and solution approach for the design of the block layout of a single-story department store is presented. The approach consists of placing departments in a racetrack configuration within the store subject to area and shape constraints. The objective function considers the area allocated to each department, contiguity of the departments to the aisle network, adjacency requirements among departments, and department revenues. The revenue generated by a department is defined as a function of its area and its exposure to the aisle network. The aisle network is comprised of two components: the racetrack, which serves as the main travel path for the customers, and the entry/exit aisle. The racetrack aisle itself is treated as a department with area allocation and corresponding revenue generation. A general tabu search optimization framework for the model with variable department areas and an aisle network with non-zero area is devised and tested.