Patent ID: 8265984
Filing Date: 2012-09-11
Classification: G06Q

Abstract:
1. A computer-implemented method for integrating multiple factors into a unified optimization model for retail network configuration, comprising: obtaining input data for modeling store configuration, said input data including at least demand of each merchandise category from each customer segment in each facility, geographic distribution of stores in an area, current revenue of stores, and physical cost of reconfiguring stores; generating a trade area as a function of store location, store format, and store capacity; generating, by a processor, trade area demand summation representing predicted total demand of all stores for all merchandise categories for all customer segments in the trade area, said predicted total demand determined as a function of store location, store format, store capacity, merchandise category, and customer segment associated with the trade area; and constructing, by the processor, an objective function, said objective function being a function of said trade area demand summation, said current revenue of stores, and said physical cost of reconfiguring stores, said objective function for optimizing store network configuration, wherein the objective function includes, wherein P(S i ) represents predicted demand of i-th outlet with configuration, V i is existing sales volume of i-th outlet, L(S i ,S i0 ) is operation cost of transforming i-th outlet's existing configuration to recommended configuration, wherein wherein D(g,b k ,n j ) represents predicted demand of merchandise category j from customer segment k in geographic-demographic entity g, TA(L i ,F i ,P i ) represents a trade area of i-th outlet determined by its location L i , format F i , and capacity P i .