INVENTORY PRICING BASED ON PRICE ELASTICITY DEMAND FROM MOVEMENT TRENDS

• US 20140379422A1
• Filed: 06/19/2013
• Published: 12/25/2014
• Est. Priority Date: 06/19/2013
• Status: Abandoned Application

• Current Assignee: Advanced Pricing Logic, Inc.
• Original Assignee: Advanced Pricing Logic, Inc.
• Inventors: CHAPMAN, Dominique, LEONARD, David H.
• Application Number:
  US13/922,040
• Publication Number:
  US 20140379422A1
• Time in Patent Office: Days
• US Class Current: 705/7.31
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

A method for selectively adjusting a price associated with an inventory stock keeping unit (SKU) is disclosed. Each of the inventory SKUs has associated therewith one or more sales transaction history records and an original price value. A numerical growth rate percentage and a growth trend corresponding to one of one or more classifications are derived for each retrieved inventory SKU. The classifications are based upon the sales transaction history records. Categorical price adjustment percentages for the one or more classifications of growth trends are received. An actual price adjustment percentage is assigned for predefined increments of the numerical growth rate percentages. A revised price value is generated for each of the inventory SKUs.

Claims

1. A method for selectively adjusting a price associated with an inventory stock keeping unit (SKU) stored in a catalog database of a plurality of inventory SKUs, the method comprising:

retrieving at least a subset of the plurality of inventory SKUs in the catalog database, each of the retrieved inventory SKUs having associated therewith one or more sales transaction history records and an original price value;

deriving for each of the inventory SKUs a numerical growth rate percentage and a growth trend corresponding to one of one or more classifications based upon the retrieved sales transaction history records;

receiving categorical price adjustment percentages for the one or more classifications of growth trends;

assigning an actual price adjustment percentage for predefined increments of the numerical growth rate percentages derived for each of the inventory SKUs; and

generating a revised price value for each of the inventory SKUs based upon the corresponding actual price adjustment percentage for the associated numerical growth rate percentage thereof.

2. The method of claim 1, wherein the sales transaction history records includes an SKU identifier, a sale date, a sale quantity corresponding to the sale date, and a quantity unit identifier for the sale quantity.

3. The method of claim 1, wherein the sales transaction history records includes an SKU identifier, a sale month, a sale year, a sale quantity summary for the sale month and the sale year, and a quantity unit identifier for the sale quantity summary.

4. The method of claim 1, wherein sales transaction history records span at least three years of sales activity.

5. The method of claim 1, wherein deriving the growth trend includes:

retrieving a seasonal index and a seasonal sensitivity value specific to the inventory SKUs from an external source;

comparing the numerical growth rate percentage to a low end threshold and a high end threshold based on the seasonal index and seasonal sensitivity values; and

assigning an increasing growth trend classification to the growth trend if the numerical growth rate is greater than or equal to the high end threshold, a decreasing growth trend classification if the numerical growth rate is less than or equal to the low end threshold, and a flat growth trend classification if the numerical growth rate is between the low end threshold and the high end threshold.

6. The method of claim 5, wherein a price adjustment range is received for each of the increasing growth trend classification, the flat growth trend classification, and the decreasing growth trend classification.

7. The method of claim 1, wherein the actual price adjustment percentages at each increment are assigned according to a transition type.

8. The method of claim 7, wherein the transition type is precise, and the actual price adjustment percentages change at growth rate percentages of growth trend classification thresholds.

9. The method of claim 7, wherein the transition type is smooth, and the actual price adjustment percentages change at each predefined percentage increment over a range of growth rate percentages for the inventory SKUs.

10. The method of claim 1, further comprising:

assigning the respective revised price values to each of the inventory SKUs for storage in the catalog database.

11. The method of claim 1, wherein each of the plurality of inventory SKUs in the catalog database has associated therewith a markup percentage value.

12. The method of claim 11, further comprising:

assigning each of the retrieved inventory SKUs to a one of a plurality of predefined markup categories based upon the associated markup percentage value, each of the predefined markup categories having a corresponding price adjustment percentage.

deriving price change values between the original price value and the revised price value for each of the retrieved inventory SKUs;

generating an adjusted price change for each of the retrieved inventory SKUs by applying the corresponding price adjustment percentage to the price change values;

generating a second revised price value for each of the inventory SKUs based upon the corresponding adjusted price change.

13. The method of claim 1, wherein each of the plurality of inventory SKUs in the catalog database has associated therewith an inventory days on hand value.

14. The method of claim 13, further comprising:

assigning each of the retrieved inventory SKUs to a one of a plurality of predefined inventory days on hand categories based upon the associated inventory days on hand value, each of the predefined inventory days on hand categories having a corresponding price adjustment percentage;

deriving price change values between the original price value and the revised price value for each of the retrieved inventory SKUs;

generating an adjusted price change for each of the retrieved inventory SKUs by applying the corresponding price adjustment percentage to the price change values; and

generating a second revised price value for each of the inventory SKUs based upon the corresponding adjusted price change.

15. The method of claim 1, wherein each of the plurality of inventory SKUs in the catalog database has associated therewith an SKU lead time value.

16. The method of claim 15, further comprising:

assigning each of the retrieved inventory SKUs to a one of a plurality of predefined SKU lead time categories based upon the associated SKU lead time value, each of the predefined SKU lead time categories having a corresponding price adjustment percentage;

deriving price change values between the original price value and the revised price value for each of the retrieved inventory SKUs;

generating an adjusted price change for each of the retrieved inventory SKUs by applying the corresponding price adjustment percentage to the price change values;

generating a second revised price value for each of the inventory SKUs based upon the corresponding adjusted price change.

22. The method of claim 15, further comprising:

assigning each of the retrieved inventory SKUs to a one of a plurality of second predefined elasticity influence categories based upon associated second elasticity influence values, each of the predefined second elasticity influence categories having a second corresponding price adjustment percentage;

wherein the aggregate price adjustment percentage for a given inventory SKU includes the second price adjustment percentage.

17. An article of manufacture comprising a program storage medium readable by a data processing apparatus, the medium tangibly embodying one or more programs of instructions executable by the data processing apparatus to perform a method for selectively adjusting a price associated with an inventory stock keeping unit (SKU) stored in a catalog database of a plurality of inventory SKUs, the method comprising:

retrieving at least a subset of the plurality of inventory SKUs in the catalog database, each of the retrieved inventory SKUs having associated therewith one or more sales transaction history records and an original price value;

deriving for each of the inventory SKUs a numerical growth rate percentage and a growth trend corresponding to one of one or more classifications based upon the retrieved sales transaction history records;

receiving categorical price adjustment percentages for the one or more classifications of growth trends;

assigning an actual price adjustment percentage for predefined increments of the numerical growth rate percentages derived for each of the inventory SKUs;

generating a revised price value for each of the inventory SKUs based upon the corresponding actual price adjustment percentage for the associated numerical growth rate percentage thereof; and

assigning the respective revised price values to each of the inventory SKUs for storage in the catalog database.

18. A method for selectively adjusting a price associated with an inventory stock keeping unit (SKU) stored in a catalog database of a plurality of inventory SKUs, the method comprising:

retrieving at least a subset of the plurality of inventory SKUs in the catalog database, each of the retrieved inventory SKUs having associated therewith one or more sales transaction history records and an original price value;

deriving for each of the inventory SKUs a numerical growth rate percentage and a growth trend corresponding to one of one or more classifications based upon the retrieved sales transaction history records;

receiving categorical price adjustment percentages for the one or more classifications of growth trends;

assigning an actual price adjustment percentage for predefined increments of the numerical growth rate percentages derived for each of the inventory SKUs;

generating a revised price value for each of the inventory SKUs based upon the corresponding actual price adjustment percentage for the associated numerical growth rate percentage thereof;

assigning each of the retrieved inventory SKUs to a one of a plurality of first predefined elasticity influence categories based upon associated first elasticity influence values, each of the predefined first elasticity influence categories having a corresponding first price adjustment percentage;

deriving price change values between the original price value and the revised price value for each of the retrieved inventory SKUs;

generating an adjusted price change for each of the retrieved inventory SKUs by applying a corresponding aggregate price adjustment percentage including the first price adjustment percentage to the price change values; and

generating a second revised price value for each of the inventory SKUs based upon the corresponding adjusted price change.

19. The method of claim 18, wherein the first predefined elasticity influence categories are predefined markup percentage categories and the first elasticity influence values are markup percentage values.

20. The method of claim 18, wherein the first predefined elasticity influence categories are predefined inventory days on hand categories and the first elasticity influence values are inventory days on hand values.

21. The method of claim 18, wherein the first predefined elasticity influence categories are SKU lead time categories and the first elasticity influence values are SKU lead time values.