Computer-implemented product valuation tool
First Claim
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1. Software for valuing manufactured products embodied in a computer-readable medium and, when executed using one or more computer systems is configured to:
- assign a price to each of a plurality of products, each product comprising one or more product components;
assign a demand probability value to each product;
calculate a component value for each component by;
(a) assuming a beginning value for each component;
(b) for a first component, calculating prorated values, such that for each product using that component, a prorated value is calculated on that component by calculating the difference between the product price and a value of the product'"'"'s other components;
(c) calculating a component value as a function of the prorated values and the probability values;
(d) repeating (b) and (c) for all other components;
(e) determining whether the component values converge; and
(f) if any component value does not converge, using the calculated component value as the beginning component value and repeating (b) through (e) for that component; and
calculating a value for each product, by summing the component values of all components of that product.
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Abstract
A method of valuing products based on demand probabilities. Products are designed by identifying product components, and combining the components in various combinations to provide standard and non-standard products. Components are valued using an algorithm that considers demand probability as well as known prices of standard products. The component values are added to determine product values and may be used to make pricing and order fulfillment decisions.
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Citations
16 Claims
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1. Software for valuing manufactured products embodied in a computer-readable medium and, when executed using one or more computer systems is configured to:
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assign a price to each of a plurality of products, each product comprising one or more product components; assign a demand probability value to each product; calculate a component value for each component by; (a) assuming a beginning value for each component; (b) for a first component, calculating prorated values, such that for each product using that component, a prorated value is calculated on that component by calculating the difference between the product price and a value of the product'"'"'s other components; (c) calculating a component value as a function of the prorated values and the probability values; (d) repeating (b) and (c) for all other components; (e) determining whether the component values converge; and (f) if any component value does not converge, using the calculated component value as the beginning component value and repeating (b) through (e) for that component; and calculating a value for each product, by summing the component values of all components of that product. - View Dependent Claims (2, 3, 4, 5, 6, 13, 14)
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7. A computer-implemented system for calculating product values, comprising:
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a computer system comprising a storage medium and a processor, wherein the processor is configured to; assign a price to each of a plurality of products, each product comprising one or more product components; assign a demand probability value to each product; calculate a component value for each component by; (a) assuming a beginning value for each component; (b) for a first component, calculating prorated values, such that for each product using that component, a prorated value is calculated on that component by calculating the difference between the product price and a value of the product'"'"'s other components; (c) calculating a component value as a function of the prorated values and the probability values; (d) repeating (b) and (c) for all other components; (e) determining whether the component values converge; and (f) if any component value does not converge, using the calculated component value as the beginning component value and repeating (b) through (e) for that component; and calculate a value for each product, by summing the component values of all components of that product. - View Dependent Claims (8, 9, 10, 11, 12, 15, 16)
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Specification