Generating an optimized price schedule for a product

• US 7,937,282 B2
• Filed: 05/05/2008
• Issued: 05/03/2011
• Est. Priority Date: 10/06/2000
• Status: Expired due to Fees

• Current Assignee: Blue Yonder Group, Inc. (Panasonic Holdings Corporation)
• Original Assignee: i2 Technologies US Incorporated (Panasonic Holdings Corporation)
• Inventors: Kalyan, Vibhu, Crawford, James M. Jr., Walser, Joachim P., Dalal, Mukesh, Palamarthy, Srinivas
• Primary Examiner(s): Jeanty; Romain
• Assistant Examiner(s): Fleischer; Mark A
• Application Number:
  US12/115,016
• Publication Number:
  US 20080208678A1
• Time in Patent Office: 1,093 Days
• Field of Search: 705/7, 705/10
• US Class Current: 705/7.11
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration
• 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

Generating a price schedule involves generating a graph having paths that include states with values. The graph is generated by determining the values of a successor state from the values of a predecessor state. An optimal path is selected, and a price schedule is determined from the optimal path. Computing an elasticity curve involves having a demand model, values for demand model, and filter sets that restrict the values. Elasticity curves are determined by filtering the values using filter sets, and calculating the elasticity curve using the demand model. A best-fitting elasticity curve is selected. Adjusting a demand forecast value includes estimating an inventory and a demand at a number of locations. An expected number of unrealized sales at each location is calculated. An sales forecast value is determined according to the expected number.

Claims

1. A computer-implemented method for generating a price schedule for one or more products, the method comprising:

generating, by a computer system, a plurality of stages, each stage representing a time interval and comprising one or more states and a plurality of paths, each path comprising a plurality of states, the plurality of states having at least one predecessor state that is coupled with at least one successor state by a transition, each state having a price value, an inventory value, and a state value;

generating, by the computer system, a transition graph by repeating the following for the plurality of stages until a final stage is reached;

determining the price value of a successor state;

calculating the inventory value of the successor state using the price value and the inventory value of a predecessor state; and

calculating the state value of the successor state using the price value and the inventory value of the predecessor state;

applying one or more constraints that limits a difference in values between a successor state and a predecessor state;

selecting, by the computer system, a path of the plurality of paths according to the state values of the one or more states;

determining, by the computer system, a price schedule from the selected path; and

outputting, by the computer system, the price schedule to one or more computers associated with one or more entities.

2. The method of claim 1, further comprising quantizing the inventory value of each successor state.

3. The method of claim 1, further comprising quantizing the price value of each successor state.

4. The method of claim 1, further comprising:

defining a plurality of locations;

determining a demand forecast for the plurality of locations;

calculating an expected number of unrealized sales at each of the plurality of locations;

adjusting the demand forecast in response to the expected number of unrealized sales;

determining a sales forecast from the demand forecast; and

adjusting the inventory value of the successor state in response to the sales forecast.

5. A system for generating a price schedule for one or more products, the system comprising:

a computer system coupled with one or more entities, the computer system comprising;

a storage medium stored therein a transition graph generator, the transition graph generator configured to generate;

a plurality of stages, each stage representing a time interval and comprising one or more states and a plurality of paths, each path coupling a sequence of the one or more states, such that at least one predecessor state that is coupled with at least one successor state by a transition, each state having a price value, an inventory value, and a state value;

a transition graph by repeating the following for the plurality of stages until a final stage is reached;

determining the price value of a successor state;

calculating the inventory value of the successor state using the price value and the inventory value of a predecessor state; and

calculating the state value of the successor state using the price value and the inventory value of the predecessor state;

applying one or more constraints that limits a difference in values between a successor state and a predecessor state; and

a storage medium stored therein an optimizer coupled with the transition graph generator and configured to;

select a path of the plurality of paths according to the state values of the one or more states; and

determine a price schedule from the selected path,

wherein the computer system is further configured to output the price schedule to one or more computers associated with the one or more entities.

6. The system of claim 5, wherein the transition graph generator is further configured to quantize the inventory value of each successor state.

7. The system of claim 5, wherein the transition graph generator is further configured to quantize the price value of each successor state.

8. The system of claim 5, further comprising an elasticity module coupled to the transition graph generator and further configured to compute an elasticity curve, the transition graph generator further configured to compute the inventory value of each successor state using the elasticity curve.

9. The system of claim 5, wherein the transition graph generator is further configured to:

define a plurality of locations;

determine a demand forecast for the locations;

calculate an expected number of unrealized sales at each location;

adjust the demand forecast in response to the expected number of unrealized sales;

determine a sales forecast from the demand forecast; and

adjust the inventory value of the successor state in response to the sales forecast.

10. A computer-readable storage media embodied with software for generating a price schedule for one or more products, the software when executed using a computer system is configured to:

generate a plurality of stages, each stage representing a time interval and comprising one or more states and a plurality of paths, each path comprising a plurality of states, the plurality of states having at least one predecessor state that is coupled to at least one successor state by a transition, each state having a price value, an inventory value, and a state value,

generate a transition graph by repeating the following for the plurality of stages until a final stage is reached;

determine the price value of a successor state;

calculate the inventory value of the successor state using the price value and the inventory value of a predecessor state; and

calculate the state value of the successor state using the price value and the inventory value of the predecessor state;

apply one or more constraints that limits a difference in values between a successor state and a predecessor state;

select a path of the plurality of paths according to the state values of the one or more states;

determine a price schedule from the selected path; and

output the price schedule to one or more computers associated with one or more entities.

11. The computer-readable storage media of claim 10, wherein the software is further configured to quantize the inventory value of each successor state.

12. The computer-readable storage media of claim 10, wherein the software is further configured to quantize the price value of each successor state.

13. The computer-readable storage media of claim 10, wherein the software is further configured to:

compute an elasticity curve; and

compute the inventory value of each successor state using the elasticity curve.

14. The computer-readable storage media of claim 10, wherein the software is further configured to:

define a plurality of locations;

determine a demand forecast for the locations;

calculate an expected number of unrealized sales at each location;

adjust the demand forecast in response to the expected number of unrealized sales;

determine a sales forecast from the demand forecast; and

adjust the inventory value of the successor state in response to the sales forecast.