Price optimization system

US11270326B2 · kind B2 · utility

Assignee

• Oracle International Corporation · US

Inventors

• Su-Ming WU · Waltham, US
• Andrew VAKHUTINSKY · Sharon, US
• Setareh Borjian Boroujeni · Burlington, US
• Santosh Bai Reddy · Burlington, US
• Kiran PANCHAMGAM · Bedford, US
• Sajith VIJAYAN · Burlington, US
• Mengzhenyu Zhang · Ann Arbor, US

Key dates

• Filing date: Apr 10, 2019
• Grant date: Mar 8, 2022
• Expiry date: Sep 17, 2039

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q30/0204
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Embodiments determine a price schedule for an item by, for each item, receiving a set of prices for the item, an inventory quantity for the item, a per-segment demand model for the item, and an objective function that is a function of the per-segment demand model and maximizes revenue based at least on a probability of a return of the item and a cost of the return. Embodiments allocate the inventory quantity among a plurality of customer segments based at least on a predicted contribution of each customer segment to the objective function. Embodiments determine a markdown portion of the price schedule for the item that maximizes the objective function, where the markdown portion assigns a series of prices selected from the set of prices for respective time periods during a clearance season for the item.