ECONOMETRIC OPTIMIZATION ENGINE

• US 20080086429A1
• Filed: 10/17/2007
• Published: 04/10/2008
• Est. Priority Date: 12/22/2000
• Status: Active Grant

• Current Assignee: Acoustic, L.P.
• Original Assignee: DemandTec Inc. (International Business Machines Corporation)
• Inventors: Venkatraman, Krishna, Lee, Hau, Delurgio, Phil, Neal, Michael, Valentine, Suzanne
• Granted Patent: US 7,672,866 B2
• Time in Patent Office: Days
• US Class Current: 705/400
• CPC Class Codes: G06Q 20/201 Price look-up processing, e.g. updating
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A preferred set of prices for a plurality of products, generally demand coefficients is provided. Cost data including activity-based costs is also received. A preferred set of prices that will provide a local optimum for the preferred set of prices which maximizes profit is then determined. In one embodiment, a sales model and a cost model are created. A plurality of rules is specified. The preferred set of prices is then determined based on the sales model, the cost model, and the plurality of rules.

Claims

1. A method for determining a preferred set of prices for a plurality of products, comprising:

creating a sales model;

creating a cost model;

specifying a plurality of rules;

determining the preferred set of prices based on the sales model, the cost model, and the plurality of rules.

2. An optimization engine, useful in association with an econometric engine for creating a sales model and a financial model engine for creating a cost model, the optimization engine comprising:

a rule tool, which stores a plurality of rule parameters; and

a price calculator connected to the rule tool, the financial model engine, and the econometric engine, wherein the price calculator determines a preferred set of prices based on rule parameters, the sales model, and the cost model.