MULTI-PRODUCT PRICING MARKDOWN OPTIMIZER

摘要

A system that determines markdown pricing for a plurality of items over a plurality of time periods receives a non-linear time-dependent problem, where the non-linear time-dependent problem comprises a demand model. The system determines approximate inventory levels for each item in each time period and, for a plurality of pair of items in a product category, determines coefficients for a change in demand of a first product at each of the plurality of time periods when a price of a second product is changed using initial prices and initial approximate inventory levels. The system generates an approximate MILP problem comprising a change of demand based on a sum of the determined coefficients. The system then solves the MILP problem to generate revised prices and revised inventory levels. The functionality is repeated until a convergence criteria is satisfied, and then the system assigns the revised prices as the markdown product pricing.

主权项

1. A computer readable medium having instructions stored thereon that, when executed by a processor, cause the processor to determine markdown product pricing for a plurality of items over a plurality of time periods, the determining comprising:
receiving a non-linear time-dependent problem, wherein the non-linear time-dependent problem comprises a demand model; determining approximate inventory levels for each item in each time period; for a plurality of pair of items in a product category, determining coefficients for a change in demand of a first product at each of the plurality of time periods when a price of a second product is changed using initial prices and initial approximate inventory levels; generating an approximate Mixed Integer Linear Programming (MILP) problem comprising a change of demand based on a sum of the determined coefficients; solving the MILP problem to generate revised prices and revised inventory levels; when the generated revised prices and revised inventory levels do not satisfy a convergence criteria after the solving, repeating the determining coefficients, the generating the approximate MILP problem and the solving the MILP problem using the revised prices and the revised inventory levels as the initial prices and initial approximate inventory levels until the convergence criteria is satisfied; when the convergence criteria is satisfied, assigning the revised prices as the markdown product pricing.