Generating an optimized price schedule for a product
View Patent ↗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.
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.