Patent ID: 7672866

Claim:
A computer implemented method for determining a preferred set of prices for a plurality of products, useful in association with a computer system, the method comprising: creating a sales model using a computer processor enabled to access computer readable memory from received store data, wherein the sales model includes a group sales equation and a market share equation, and storing the sales model within the computer readable memory; creating a cost model using the computer processor from the received store data, and storing the cost model within the computer readable memory; specifying a plurality of rules using the computer processor, and storing the plurality of rules within the computer readable memory; calculating group sales using the group sales equation using the computer processor, and storing the calculated group sales within the computer readable memory; calculating product margin using the market share equation using the computer processor, and storing the calculated product margin within the computer readable memory; predict product sales, using the computer processor, by combining the calculated group sales with the calculated product margin, and storing the predicted product sales within the computer readable memory; calculating the preferred set of prices by performing an optimization for a pricing goal, using the computer processor enabled to access the computer readable memory, wherein the optimization is based on the predicted product sales, the sales model, the cost model, and the plurality of rules, and wherein the optimization utilizes a heuristic approach to generate a feasible solution; and setting the prices, using the computer processor, of the plurality of products to the calculated preferred set of prices.