Systems, methods, and other embodiments associated with assortment and display space optimization are described. In one embodiment, a method creates an optimal planogram. The example method includes receiving data describing i) a set of items described by item dimensions, ii) display space dimensions; iii) business rules, and iv) a key performance indicator. A set of possible shelf positions is identified for each item. An expected sales volume is calculated for each item and shelf position pair based, at least in part, on a selected demand model. The method includes providing i) the expected sales volume for the item and shelf position pairs, ii) a set of constraints that embody the business rules, and iii) an objective function to an optimization problem solver that computes a solution. Based on the solution, a planogram is output that specifies the assortment of items and respective optimal shelf positions of the items.