BALANCING SUPPLY AND DEMAND USING DEMAND-SHAPING ACTIONS

A method for balancing supply and demand for a product using demand-shaping action includes identifying an imbalance between supply and demand for a given product. A customer choice model is generated based on collected historical sales data pertaining to the given product and at least one product s...

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Bibliographic Details
Main Authors ETTL MARKUS, RAVI RAJESH KUMAR, ERVOLINA THOMAS R, LEDERMAN ROGER D, PETRIK MAREK
Format Patent
LanguageEnglish
Published 05.03.2015
Subjects
CALCULATING
COMPUTING
COUNTING
DATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FORADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORYOR FORECASTING PURPOSES
PHYSICS
SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE,COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTINGPURPOSES, NOT OTHERWISE PROVIDED FOR
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Summary:A method for balancing supply and demand for a product using demand-shaping action includes identifying an imbalance between supply and demand for a given product. A customer choice model is generated based on collected historical sales data pertaining to the given product and at least one product similar to the given product. The customer choice model is configured to estimate, for a given customer or group of customers, a likelihood of effecting a substitution between each product pair of the given product and the at least one product similar to the given product, for each of one or more available demand shaping actions. One or more of the available demand shaping actions are automatically selected to minimize an estimate of revenue shortfall or inventory holding costs resulting from the identified imbalance between supply and demand.
Bibliography:Application Number: US201314029380