Design of Product Placement Layout in Retail Shop Using Market Basket Analysis

2113 WordsOct 14, 20119 Pages
MAKARA, TEKNOLOGI, VOL. 9, NO. 2, NOPEMBER 2005: 43-47 43 DESIGN OF PRODUCT PLACEMENT LAYOUT IN RETAIL SHOP USING MARKET BASKET ANALYSIS Isti Surjandari dan Annury Citra Seruni Industrial Engineering Department, Faculty of Engineering, University of Indonesia, Depok 16424, Indonesia E-mail: surjandari.2@osu.edu, a_citra_s@yahoo.com Abstract Retailing is an industry with high level of competition. It is a customer-based industry which depends on how it could be aware of what the customers’ needs and requirements are. One technique most used in supermarkets is the mix merchandise. The purpose of this paper is to identify associated products, which then grouped in mix merchandise with the use of market basket analysis. This…show more content…
Apriori Algorithm Table 1. Product Categories rice-flour-sugar freshener-insecticides instant food ready-to-eat ready-to-drink eggs seasoning snack tea-coffee bread filling fat milk baby products cigarettes healthcare toiletries sanitary cleaner electronics amusements apparel accessory stationery houseware etc. Figure 2. ARFF Sample of Transactional Data MAKARA, TEKNOLOGI, VOL. 9, NO. 2, NOPEMBER 2005: 43-47 45 For the purpose of this study, empirical data is obtained from a retail store at Kukusan, Depok. A three-months transactional data of the retail’s costumers was obtained and processed using WEKA (Waikato Environment for Knowledge Analysis) [3]. The products which were studied in this research consist of 704 products. These products then classified as more specific categories (i.e., 25 categories) and listed in Table 1. The main objective of the classification was to discover a more detail of customers shopping patterns. Another objective was to avoid bias in the data processing. The first step was to choose which transactions to be included in this study. We sorted and selected transactions that had two or more product categories, which consist of 1049 transactions. These transactions were then converted to ARFF format [4]. WEKA expects the data to be in ARFF format, therefore it is necessary to

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