Patent ID: 7921030

Claim:
A method for using a profit optimization model in a computer-implemented system having a microprocessor to allow an organization that assembles multiple products from parts to optimize profit when selling the products, wherein products are organized in multiple price groups, customers to which the organization sells the products are organized in multiple customer classes, shipments of the products to the customers take place at multiple shipment times, and orders to purchase the products from the customers are received by the organization during a current order time period, the method comprising: populating at least one database using the microprocessor with demand model data and supply model data that includes demand curve data for each of the multiple price groups and each of the multiple customer classes, wherein the supply model data includes structural attributes that define which of the parts can be used to assemble each of the products; and using the profit optimization model on the computer-implemented system to optimize the organization's profit in selling the products by determining optimal prices and sales quantities for the current order time period and for multiple combinations of price groups, customer classes, and shipment time periods, wherein the optimal prices for the multiple combinations of price groups, customer classes, and shipment time periods are identified at least in part using the demand curve data while the supply model data is used to ensure that the quantities of the products sold can be manufactured using parts available to the organization and wherein the profit optimization model is used to evaluate tradeoffs involved in selling different amounts of the products during the current time period versus holding product for later sales; and performing preoptimization operations using the profit optimization model on the computer-implemented system, wherein performing the preoptimization operations includes determining, for each of the multiple shipment time periods and for each of the multiple customer classes, whether committed sales of the products exceed how many products can be assembled from the parts that are available and, if the committed sales exceed how many products can be assembled, holding constant oversold quantity variables at levels that allow the profit optimization model to produce a valid profit optimization result.