Generating a maximum-profit solution for a merchandizing fixture

• US 9,805,333 B1
• Filed: 03/15/2013
• Issued: 10/31/2017
• Est. Priority Date: 05/04/2010
• Status: Active Grant

• Current Assignee: State Farm Mutual Automobile Insurance Company (State Farm), Walgreen Co. (Walgreens Boots Alliance Incorporated)
• Original Assignee: Walgreen Co. (Walgreens Boots Alliance Incorporated)
• Inventors: Bergstrom, John, Pisinger, David
• Primary Examiner(s): Glass, Shay S
• Assistant Examiner(s): Glass, Russell S.
• Application Number:
  US13/838,165
• Time in Patent Office: 1,691 Days
• Field of Search: None
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data

Abstract

A method in a computer system for selecting an efficient combination of items for placement on a merchandizing fixture, wherein each item has a respective size, and wherein each combination of items has a respective profitability metric; including electronically receiving an indication of a size of the merchandizing fixture; electronically receiving a business rule indicative of whether gaps on the merchandizing fixture are allowed; when gaps on the merchandizing fixture are allowed, automatically selecting via a computer processor a combination of items that has a highest profitability metric and that fits on the merchandizing fixture without occupying the entire merchandizing fixture; and when gaps on the merchandizing fixture are not allowed, automatically selecting via a computer processor a combination of items that has a highest profitability and occupies the entire merchandizing fixture without exceeding the size of the merchandizing fixture.

Claims

1. A method in a computer system for selecting an efficient combination of items for placement on a merchandizing fixture, wherein each item has a respective size, and wherein each combination of items has a respective profitability metric, the method comprising:

electronically receiving, at an assortment development engine, an indication of a size of the merchandizing fixture;

electronically receiving, at the assortment development engine, a list of two or more items to be disposed on the merchandizing fixture;

electronically providing, by the assortment development engine via a user interface, for each of a plurality of widths of combinations of items, an indication of a respective profitability metric when a business rule indicates that gaps on the merchandizing fixture are allowed and an indication of a respective profitability metric when a business rule indicates that gaps on the merchandizing fixture are not allowed;

electronically receiving, at the assortment development engine via the user interface from a user of the user interface in response to electronically providing the indications of the respective profitability metrics via the user interface, a selection of one of the business rule that indicates that gaps on the merchandizing fixture are allowed or the business rule that indicates that gaps on the merchandizing fixture are not allowed, the one of the business rule that indicates that gaps on the merchandizing fixture are allowed or the business rule that indicates that gaps on the merchandizing fixture are not allowed being selected using the user interface;

electronically receiving, at the assortment development engine, for each of a plurality of combinations of items, an indication of respective profitability as a profitability metric, each indication of respective profitability being derived using individual item profitability and using item interaction data indicative of a probability of transferring customer demand between items in each of a plurality of subsets of items included in the respective one of the plurality of combinations of items;

when the business rule that indicates that gaps on the merchandizing fixture are allowed is selected via the user interface, automatically selecting by the assortment development engine a combination of items that (i) has a highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) fits on the merchandizing fixture without occupying the entire merchandizing fixture, including applying, using the assortment development engine, a rule that allows gaps on the merchandizing fixture to select the combination of items that has the highest profitability metric and that includes at least one facing of each item included in the list, the selected combination of items being one of the plurality of combinations of items;

when the business rule that indicates that gaps on the merchandizing fixture are not allowed is selected via the user interface, automatically selecting by the assortment development engine a combination of items that (i) has a highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) occupies the entire merchandizing fixture without exceeding the size of the merchandizing fixture, including applying, using the assortment development engine, a rule that forbids gaps on the merchandizing fixture to avoid selecting a combination of items that has a highest profitability metric but that does not occupy the entire merchandizing fixture and to select the combination of items that (i) has the highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) occupies the entire merchandizing fixture without exceeding the size of the merchandizing fixture, the selected combination of items being one of the plurality of combinations of items; and

providing, by the assortment development engine via the user interface, an indication of the selected combination of items to the user of the user interface so that the one of the plurality of combinations of items that includes at least one facing of each item included in the list and has the highest profitability metric of the combinations of items in the plurality of combinations of items that satisfy the selected business rule is placed on the merchandizing fixture.

2. The method of claim 1, wherein the list is a first list, the method further comprising receiving a second list of one or more optional items, wherein the selected combination of items includes zero or more facings of each item included in the second list.

3. The method of claim 1, further comprising receiving, for each item included in the list, an indication of a maximum number of facings of the item to be disposed on the merchandizing fixture.

4. The method of claim 1, further comprising receiving an indication of a maximum size of a gap allowed on the merchandizing fixture when the business rule that indicates that gaps are allowed is selected.

5. A method in a computer system for selecting an efficient combination of items for placement on a merchandizing fixture, the method comprising:

electronically receiving, at an assortment development engine, item profitability data that indicates, for each of a plurality of combinations of items, respective size and respective profitability, each respective profitability being derived using individual item profitability and using item interaction data indicative of a probability of transferring customer demand between items in each of a plurality of subsets of items included in the respective one of the plurality of combinations of items;

electronically receiving, at the assortment development engine, a plurality of possible sizes of the merchandizing fixture;

electronically receiving, at the assortment development engine, a list of two or more items to be disposed on the merchandizing fixture;

electronically providing, by the assortment development engine via a user interface, for each of the plurality of possible sizes of the merchandizing fixture, an indication of a respective profitability when a business rule indicates that gaps on the merchandizing fixture are allowed and an indication of a respective profitability when a business rule indicates that gaps on the merchandizing fixture are not allowed;

selecting by the assortment development engine, from among the plurality of combinations of items, a respective candidate combination of items for each of the plurality of possible sizes of the merchandizing fixture, including receiving, via the user interface from a user of the user interface in response to electronically providing the indications of respective profitability via the user interface, a selection of one of the business rule that indicates that gaps on the merchandizing fixture are allowed or the business rule that indicates that gaps on the merchandizing fixture are not allowed and applying the selected business rule, wherein each candidate combination of items (i) fits on the merchandizing fixture for the corresponding size, (ii) includes at least one facing of each item included in the list, and (iii) has a highest profitability among those of the plurality of combinations of items that fit on the merchandizing fixture for the corresponding size in accordance with the selected business rule, the one of the business rule that indicates that gaps on the merchandizing fixture are allowed or the business rule that indicates that gaps on the merchandizing fixture are not allowed being selected using the user interface, wherein applying the selected business rule includes applying, using the assortment development engine, a rule that allows gaps on the merchandizing fixture to select the respective candidate combinations of items when the business rule that indicates that gaps on the merchandizing fixture are allowed is selected and applying, using the assortment development engine, a rule that forbids gaps on the merchandizing fixture to avoid selecting a respective candidate combination of items that has a highest profitability metric but that does not occupy the entire merchandizing fixture for the corresponding size and to select a respective candidate combination of items that (i) has a highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) occupies the entire merchandizing fixture for the corresponding size without exceeding the corresponding size;

selecting by the assortment development engine, from among the candidate combinations of items, a combination of items with a highest profitability and that includes at least one facing of each item included in the list; and

providing, by the assortment development engine via the user interface, an indication of the selected combination of items to the user of the user interface so that the one of the plurality of combinations of items that includes the at least one facing of each item included in the list and has the highest profitability of the combinations of items in the plurality of combinations of items that (i) fit on the merchandizing fixture for one of the plurality of possible sizes of the merchandizing fixture and (ii) satisfy the selected business rule is placed on the merchandizing fixture.

6. The method of claim 5, further comprising receiving an indication of a maximum size of a gap allowed on the merchandizing fixture when the business rule that indicates that gaps are allowed is selected.

7. The method of claim 5, wherein the size of the merchandizing fixture corresponds to a width of the merchandizing fixture.

8. The method of claim 5, further comprising generating a plot for display on a display device, including displaying a plurality of data points, each corresponding to one of the candidate combinations.

9. The method of claim 8, including plotting profitability on a vertical axis versus merchandizing fixture size on a horizontal axis.

10. A system for selecting an efficient combination of items for placement on a merchandizing fixture, the system comprising:

one or more processors;

a first computer-readable medium storing profitability and size data for a plurality of items; and

an assortment development engine including a second computer-readable medium storing instructions that specially configure the one or more processors such that, when executed on the one or more processors, the instructions cause the one or more processors to;

receive an indication of a size of merchandizing fixture,

receive a list of two or more of the plurality of items to be disposed on the merchandizing fixture,

provide, via a user interface, for each of a plurality of widths of combinations of items, an indication of a respective profitability metric when a business rule indicates that gaps on the merchandizing fixture are allowed and an indication of a respective profitability metric when a business rule indicates that gaps on the merchandizing fixture are not allowed,

receive, via the user interface from a user of the user interface in response to providing the indications of the respective profitability metrics via the user interface, a selection of one of the business rule that indicates that gaps on the merchandizing fixture are allowed or the business rule that indicates that gaps on the merchandizing fixture are not allowed, the one of the business rule that indicates that gaps on the merchandizing fixture are allowed or the business rule that indicates that gaps on the merchandizing fixture are not allowed being selected using the user interface,

receive, for each of a plurality of combinations of items, an indication of respective profitability as a profitability metric, each indication of respective profitability being derived using the profitability data for the plurality of items and using item interaction data indicative of a probability of transferring customer demand between items in each of a plurality of subsets of items included in the respective one of the plurality of combinations of items,

when the business rule that indicates that gaps on the merchandizing fixture are allowed is selected, automatically select a combination of items that (i) has a highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) fits on the merchandizing fixture without occupying the entire merchandizing fixture, including applying a rule that allows gaps on the merchandizing fixture to select the combination of items that has the highest profitability metric and that includes at least one facing of each item included in the list, the selected combination of items being one of the plurality of combinations of items,

when the business rule that indicates that gaps on the merchandizing fixture are not allowed is selected, automatically select a combination of items that (i) has a highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) occupies the entire merchandizing fixture without exceeding the size of the merchandizing fixture, including applying a rule that forbids gaps on the merchandizing fixture to avoid selecting a combination of items that has a highest profitability metric but that does not occupy the entire merchandizing fixture and to select the combination of items that (i) has the highest profitability metric, (ii) includes at least one facing of each item included in the list, and (iii) occupies the entire merchandizing fixture without exceeding the size of the merchandizing fixture, the selected combination of items being one of the plurality of combinations of items, and

provide, via the user interface, an indication of the selected combination of items to the user of the user interface so that the one of the plurality of combinations of items that includes at least one facing of each item included in the list and has the highest profitability metric of the combinations of items in the plurality of combinations of items that satisfy the selected business rule is placed on the merchandizing fixture.

11. The system of claim 10, wherein the instructions, when executed on the one or more processors, further cause the one or more processors to receive an indication of a maximum size of a gap allowed on the merchandizing fixture when the business rule that indicates that gaps are allowed is selected.

12. The system of claim 10, further comprising:

a display device,

wherein the instructions, when executed on the one or more processors, further cause the one or more processors to generate a plot.