Method of and apparatus for forecasting item availability
View Patent ↗A method and apparatus is described for determining the probability that an item will be available at a particular location at an expected time of transaction for the item. Variances for both reported and unreported sales rates of the item may be calculated. Probability distributions may be generated for these sales rates and a convolution performed to obtain the probability that the item will be available at the expected time of transaction.
1. A machine readable medium with stored instructions, which when executed by a processor perform steps in a method comprising:
calculating a first variance for a reported sales rate of an item, wherein calculation of the first variance includes a parameter to account for inventory deliveries until an expected time of transaction;
calculating a second variance for an unreported sales rate of the item;
generating a first probability distribution for reported sales, during a delay time, of the item;
generating a second probability distribution for unreported sales of the item based on an update time of a ready to sell parameter; and
performing a convolution of the first and second probability distributions to obtain a probability of an availability of the item at an expected time of transaction.
2. The machine readable medium of claim 1 , wherein the parameter to account for inventory deliveries until an expected time of transaction is based on inventory deliveries to a physical retail selling location.
3. A machine readable medium having stored thereon instructions, which when executed by a processor, cause the professor to perform the following:
calculating a first varience for a reported sales rate of an item;
calculating a second varience for a unreported sales rate of the item;
generating a first probability distribution for reported sales, during a delay time, of the item;
generating a second probability distribution for unreported sales of the item based on an update time of a ready to sell parameter;
performing a convolution of the first and second probability distributions to obtain a probability of an availability of the item at an expected time of transaction; and
adjusting pricing, or a contractual term related to the sale of an item based on the probability of the item's availability at the expected time of transaction.