Patent ID: 8527322
Filing Date: 2013-09-03
Classification: G06Q

Abstract:
1. A method for proactive demand shaping of configurable products with uncertain demand, comprising: computing, using a processor, a lower bound and an upper bound on profit by considering future demand distribution of one or more products, supply outlook of one or more components and customer behavior; and generating one or more rationing heuristics based on one or more solutions of the lower bound and the upper bound, wherein computing the lower bound comprises solving a non-linear programming objective function that characterizes allocating the one or more components before demand is realized and that formulates expected profit from demand shaping and computing the upper bound comprises solving a linear programming objective function that characterizes allocating the one or more components to demand after the demand is realized and that formulates expected profit from demand shaping, wherein the non-linear programming objective function maximizes expected profit expressed as revenue from selling products subtracted by penalties due to back orders and excess components, subject to constraints of restriction due to available supply of components, demand allocation requirement, restriction on substitutability of products and non-negativity requirements.