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System and method for providing a multi-channel inventory allocation approach for retailers

A technology of sales channels and inventory, applied in data processing applications, marketing, instruments, etc., can solve problems such as inappropriateness

Active Publication Date: 2018-07-31
ORACLE INT CORP
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Problems solved by technology

However, these avenues are not suitable as retailers have multiple channels and make extensive use of localization

Method used

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  • System and method for providing a multi-channel inventory allocation approach for retailers
  • System and method for providing a multi-channel inventory allocation approach for retailers
  • System and method for providing a multi-channel inventory allocation approach for retailers

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Embodiment Construction

[0021] Computerized systems, methods, and other embodiments are disclosed for determining how to allocate inventory of retail items across multiple sales channels in an attempt to maximize expected sales of retail items expected by generated income. Consider new data types, including cross-sell opportunities, customer-specific average revenue per unit (ARPU), store-level prices, and channel-specific shipping costs. Differences in statistical demand patterns across sales channels are also taken into account. Example embodiments are discussed herein with respect to computerized retail management, which takes into account revenue factor data, statistical demand data, and current inventory levels.

[0022] In one embodiment, revenue maximization logic is disclosed that is configured to consider mathematical relationships of interest. The mathematical relationship indicates that the expected revenue of a retail item can be maximized when the inventory of the retail item is alloca...

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Abstract

Systems, methods, and other embodiments are disclosed that are configured to maximize expected net revenue for a retail item. In one embodiment, input data associated with a retail item is read. A total inventory amount for the retail item that is available for distribution is initially allocated across sales channels where the retail item is sold to form a plurality of allocated inventory amounts, as represented in an inventory allocation data structure. An attempt is made to equalize marginal revenue values associated with the retail item across the sales channels as represented in a marginal revenue data structure. The allocated inventory amounts are iteratively adjusted, and marginal revenue values are iteratively updated based on the input data and the adjusted allocated inventory amounts for the sales channels. As the updated marginal revenue values approach equalization across the sales channels, the expected net revenue approaches maximization.

Description

Background technique [0001] Today, retailers often buy a fixed amount of inventory and divide it across locations and channels to sell it. For example, a retailer with a website and a hundred stores may have to determine, for each individual type of retail item purchased, how much inventory to reserve for online sales and how much to send to each store. Traditionally, the retail industry has focused on allocating SKUs based on demand. Additionally, inventory has traditionally been divided among stores such that each location's inventory levels are proportional to its needs. [0002] However, some retailers already use a "priority matrix" approach to allocating inventory. A priority matrix can be used to allocate inventory according to the priorities assigned to different types of demand and to different stores. For example, the priority matrix may assign highest priority to backorders, second priority to display stock, and third priority to safety stock. Therefore, the pri...

Claims

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Application Information

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IPC IPC(8): G06Q10/08
CPCG06Q10/08G06Q10/08345G06Q10/087G06Q30/0206
Inventor D·R·安德森J·S·拜博P·J·博安南
Owner ORACLE INT CORP