Patent Document ID: 7660736
Application ID: 11524153
Patent Flag: 1

Claim One:
1. A computer-implemented method of pricing an order for a product based on varying lead times during a specified time period, comprising: calculating, by a computer system, a set of values for a product over a range of available supplies of the product; determining, by the computer system, a size Q of the order; selecting, by the computer system, a set of order points during a time horizon, each order point having a lead time LT to the next order point; for a first order point, calculating, by the computer system, an incremental production quantity as Q/LT, and calculating, by the computer system, revenue displaced by the incremental production quantity using the product values; repeating the preceding act for each other order point; calculating, by the computer system, an average displaced revenue; and calculating, by the computer system, the price for the order, using the results of the preceding act.