Patent ID: 7930224

Claim:
A computer-implemented method for managing and predicting profit leakage, the method comprising the steps of: creating a dynamic deduction space comprising a plurality of dimensions associated with historical deduction data and profit leakage information associated with a combination of two or more of the dimensions; determining whether a high variance or a low variance exists between attributes of at least one of the dimensions; in response to determining that a high variance exists, splitting the at least one dimension into at least two dimensions; in response to determining that a low variance exists, combining at least two neighboring cells in the one dimension so as to form a new cell that is larger than each of the two neighboring cells, the new cell comprising coarser attribute values; receiving information associated with an open deduction; identifying a dimension set in the deduction space that corresponds to the open deduction; determining, by a processor, a prediction of profit leakage associated with the dimension set that has been identified as corresponding to the open deduction; and assigning a profit leakage prediction classification to the open deduction based on the prediction.