Method and apparatus for unified optimization model for retail network configuration
First Claim
1. A computer-implemented method for integrating multiple factors into a unified optimization model for retail network configuration, comprising:
- obtaining input data for modeling store configuration, said input data including at least demand of each merchandise category from each customer segment in each facility, geographic distribution of stores in an area, current revenue of stores, and physical cost of reconfiguring stores;
generating a trade area as a function of store location, store format, and store capacity;
generating, by a processor, trade area demand summation representing predicted total demand of all stores for all merchandise categories for all customer segments in the trade area, said predicted total demand determined as a function of store location, store format, store capacity, merchandise category, and customer segment associated with the trade area; and
constructing, by the processor, an objective function, said objective function being a function of said trade area demand summation, said current revenue of stores, and said physical cost of reconfiguring stores, said objective function for optimizing store network configuration,wherein the objective function includes,
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Abstract
A method and system for integrating multiple factors into a unified optimization model for retail network configuration, in one aspect, obtains input data for modeling store configuration. The input data may include demand of each merchandise category from each customer segment in each facility, geographic distribution of stores in an area, current revenue of stores, and physical cost of reconfiguring stores. A trade area is generated as a function of store location, store format, and store capacity. The method and system also generates trade area demand summation representing predicted total demand of all stores for all merchandise categories for all customer segments in the trade area, as a function of store location, store format, store capacity, merchandise category, and customer segment associated with the trade area. An objective function is constructed as a function of said trade area demand summation, current revenue of stores, and physical cost of reconfiguring stores.
23 Citations
17 Claims
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1. A computer-implemented method for integrating multiple factors into a unified optimization model for retail network configuration, comprising:
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obtaining input data for modeling store configuration, said input data including at least demand of each merchandise category from each customer segment in each facility, geographic distribution of stores in an area, current revenue of stores, and physical cost of reconfiguring stores; generating a trade area as a function of store location, store format, and store capacity; generating, by a processor, trade area demand summation representing predicted total demand of all stores for all merchandise categories for all customer segments in the trade area, said predicted total demand determined as a function of store location, store format, store capacity, merchandise category, and customer segment associated with the trade area; and constructing, by the processor, an objective function, said objective function being a function of said trade area demand summation, said current revenue of stores, and said physical cost of reconfiguring stores, said objective function for optimizing store network configuration, wherein the objective function includes, - View Dependent Claims (2, 3, 4, 5)
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6. A system for integrating multiple factors into a unified optimization model for retail network configuration, comprising:
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a processor; data input module operable to execute on the processor, said data input module further operable to obtaining input data for modeling store configuration, said input data including at least demand of each merchandise category from each customer segment in each facility, geographic distribution of stores in an area, current revenue of stores, and physical cost of reconfiguring stores; and
optimization objective function integration module operable to execute on the processor and to generate a trade area as a function of store location, store format, and store capacity, said optimization objective function integration module further operable to generate trade area demand summation representing predicted total demand of all stores for all merchandise categories for all customer segments in the trade area, said predicted total demand determined as a function of store location, store format, store capacity, merchandise category, and customer segment associated with the trade area, said optimization objective function integration module further operable to construct an objective function, said objective function being a function of said trade area demand summation, said current revenue of stores, and said physical cost of reconfiguring stores, said objective function for optimizing store network configuration,wherein the objective function includes - View Dependent Claims (7, 8, 9, 10, 11, 12)
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13. A non-transitory program storage device readable by a machine, tangibly embodying a program of instructions executable by the machine to perform a method of integrating multiple factors into a unified optimization model for retail network configuration, comprising:
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obtaining input data for modeling store configuration, said input data including at least demand of each merchandise category from each customer segment in each facility, geographic distribution of stores in an area, current revenue of stores, and physical cost of reconfiguring stores; generating a trade area as a function of store location, store format, and store capacity; generating trade area demand summation representing predicted total demand of all stores for all merchandise categories for all customer segments in the trade area, said predicted total demand determined as a function of store location, store format, store capacity, merchandise category, and customer segment associated with the trade area; and constructing an objective function, said objective function being a function of said trade area demand summation, said current revenue of stores, and said physical cost of reconfiguring stores, said objective function for optimizing store network configuration wherein the objective function includes - View Dependent Claims (14, 15, 16, 17)
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Specification