Patent ID: 6910017

Claim:
Software stored on a machine-readable medium that configures a machine to do the following: from data that includes prices and unit sales of an item of commerce for a succession of time periods during which the item was sold, derive a relationship of the form S ( t )= N o *N c *t γ *[e −(t−t pk ) α +C] where S(t) represents gross sales revenues of the item; t is time; N o is a curve fitting parameter; N c is a demand multiplier representing an increase in sales that occurs when price is reduced; t pk is a time of peak sales; α and γ are curve fitting constants; C is a residual sales rate at large values of t; and N c is a function representing a demand multiplier that is a function of price, predict a maximum profit by optimizing the price or inventory or both over time in accordance with the aforesaid relationship and in accord with a relationship wherein profit is equal to sales revenues minus costs, and use the optimized price or inventory or both over time in connection with making price decisions or inventory decisions or both with respect to marketing the item of commerce.