Patent ID: 7302410
Filing Date: 2007-11-27
Classification: G06Q

Abstract:
1. A computer-implemented method for determining a preferred set of prices for a plurality of products, the method being implemented as a plurality of program instructions in a computer system, the method comprising: receiving, using the computer system, a plurality of demand coefficients; receiving, using the computer system, known cost data including activity-based costs; inputting, using the computer system, missing or incomplete cost data to give inputted cost data; combining using the computer system, said known cost data with said inputted cost data to give a combined cost data set; generating, using the computer system, a sales model from the plurality of demand coefficients; generating, using the computer system, a cost model from the combined cost data set, and wherein the activity-based costs include variable costs and fixed costs, further wherein said cost model determines a total cost for each product in a given demand group in a given store for a given time period by computing a cost for each selected costing activity; receiving, using the computer system, a set of actual prices; initializing, using the computer system, a set of incumbent prices to the set of actual prices; generating a local optimum by applying, using the computer system, the set of incumbent prices to the sales model and the cost model wherein the local optimum for the preferred set of prices maximizes profit; and generating the preferred set of prices by applying, using the computer system, the local optimum prices to the sales model and the cost model in an iterative manner until the preferred set of prices is reached.