Patent ID: 7313532
Filing Date: 2007-12-25
Classification: G06Q

Abstract:
1. Computer implemented system for determining the most profitable distribution policy for a single period inventory system subject to a stochastic metric constraint, the system comprising: (a) a database for storing historical sales data of sales information of each i (b) a forecast engine for forecasting the mean demand λ (c) a unit cost file for storing the unit retail price p (d) an optimization application for receiving a threshold for the stochastic metric constraint imposed on the single period inventory system, and determining the optimal constrained draw matrix D^ for the most profitable distribution policy for the single period inventory system satisfying the threshold, wherein the stochastic metric constraint is a sales target ES(λ, D*)≧G for some pre-determined threshold G; and wherein, in the case that ES(λ, D)<G, said optimization application numerically solves the Lagrange system of equations:  for determining the optimal constrained draw matrix D^.