Patent ID: 6078893
Filing Date: 2000-06-20
Classification: G06Q

Abstract:
A computer-implemented method for tuning a demand model to a sales history that is stable with respect to random fluctuations in said sales history, said method comprising the steps of:providing a data storage having sales history data;selecting a demand model, said demand model depending on a plurality of parameters including at least one demand parameter;selecting a market model to describe how a subset of said at least one demand parameter is expected to vary according to external market information, said market model depending on at least one market parameter, which is external to said sales history data;constructing a an effective figure-of merit function from said demand model and said market model, said effective figure-of-merit function having a plurality of parameters including said at least one demand parameter and said at least one market parameter; andminimizing said effective figure-of-merit function with respect to said at least one demand parameter and said at lest one market parameter, thereby attaining an optimal value for said at least one demand parameter that is stable with respect to random fluctuations in said sales history data.