Patent ID: 8346516
Filing Date: 2013-01-01
Classification: G06Q

Abstract:
1. A computer-implemented method of predictive modeling comprising: accessing, from electronic storage, historical sales data for a product; identifying a demand pattern for the product using stochastic processing; accessing first operating variables for managing inventory for the product using a forecasting strategy; determining a first simulation model that estimates performance of the forecasting strategy; optimizing the first simulation model to estimate optimum operating variables for executing the forecasting strategy; computing, using the optimized first simulation model and by at least one processor, first cost data that estimates the cost of executing the forecasting strategy; accessing second operating variables for managing inventory for the product using a re-order strategy; determining a second simulation model that estimates performance of the re-order strategy; optimizing the second simulation model to estimate optimum operating variables for executing the re-order strategy; computing, using the optimized second simulation model and by at least one processor, second cost data that estimates the cost of executing the re-order strategy; comparing the first cost data that estimates the cost of executing the forecasting strategy with the second cost data that estimates the cost of executing the re-order strategy; based on the comparison of the first cost data with the second cost data, determining whether the estimated cost of executing the forecasting strategy is less than the estimated cost of executing the re-order strategy; and storing, in electronic storage, results of the determination of whether the estimated cost of executing the forecasting strategy is less than the estimated cost of executing the re-order strategy.