Patent ID: 8332285

Claim:
A processor-implemented method of inventory loss prediction, comprising: a prediction server determining that a first correlation of a combination of a first device characteristic with a first store characteristic with a first plurality of instances of inventory loss is of a statistical significance greater than a first defined threshold; the prediction server determining that a second correlation of a combination of a second device characteristic with a second store characteristic with a second plurality of instances of inventory loss is of a statistical significance less than the first defined threshold and greater than a second defined threshold; the prediction server determining that a third correlation of a combination of a third device characteristic and a third store characteristic with a third plurality of instances of inventory loss is of a statistical significance less than the second defined threshold; the prediction server assigning a first loss risk factor to shipments of devices with the first device characteristic shipped to retail stores with the first store characteristic; the prediction server assigning a second loss risk factor to shipments of devices with the second device characteristic shipped to retail stores with the second store characteristic; the prediction server assigning a third loss risk factor to shipments of devices with the third device characteristic shipped to retail stores with the third store characteristic; the prediction server building a predictive algorithm combining the first loss risk factor, the second loss risk factor, and the third loss risk factor wherein electronic serial numbers of devices in outgoing shipments and the destination retail stores for the devices are entered into the predictive algorithm and subjected by the predictive algorithm to decision criteria regarding the device characteristics of the devices and the store characteristics of the destination retail stores, wherein a composite loss risk factor is determined for each outgoing shipment; the prediction server receiving information about a first shipment of devices, the information comprising the electronic serial numbers of the devices and the destination retail stores of the devices; the prediction server submitting the information to the predictive algorithm for processing; and the prediction server determining a composite loss risk factor for the first shipment.