Choice Simulator for Dynamic Subscription Product Allocation
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Solution Overview
Problem
The challenge lies in efficiently assigning a combination of products to customers in a subscription-based service where each customer has unique preferences and restrictions, while managing limited stock quantities and avoiding violations of restricted products, which becomes complex due to the large number of potential combinations and variations.
Innovation Solution
A dynamic distributional system with a 'choice simulator' that determines the ideal count of choosers for each choice product through a comprehensive simulation, assigning members to either regular or neutral receivers based on success ratios and scores, ensuring efficient product allocation and minimizing violations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the vendor customizes each combo for each customer based on their preferences and restrictions, then customer satisfaction is improved, but the complexity of the assignment system increases significantly due to the large number of potential combinations
Solution Approach 1:
The patent segments the assignment problem into multiple simulation runs, where each run evaluates a subset of customers and products. The choice simulator divides the large-scale assignment problem into manageable segments that can be processed iteratively, reducing the computational complexity while still achieving personalized recommendations for each customer.
Solution Approach 2:
The patent performs preliminary simulation runs before the actual assignment to pre-determine the optimal number of choice products each customer should receive. This preliminary action identifies the ideal product count that maximizes customer satisfaction while respecting stock limitations, thereby simplifying the subsequent assignment process.
2Reliability
If the vendor offers more choice products to customers, then customer satisfaction is improved, but the likelihood of assigning restricted products increases causing violations
Solution Approach 1:
The patent implements a feedback mechanism through iterative simulation runs. The choice simulator continuously monitors assignment outcomes, tracking which customers receive restricted products and adjusting the number of choice products offered accordingly. This feedback loop enables the system to learn from past assignments and optimize future recommendations to avoid violations while maintaining customer satisfaction.
Solution Approach 2:
The patent makes the number of choice products offered to each customer dynamic rather than static. The choice simulator adjusts this number based on real-time factors including remaining stock quantities, customer restrictions, and assignment patterns observed during simulation runs. This dynamic adjustment allows the system to maximize product offerings while automatically avoiding restricted items.
3Quantity of substance
If the vendor purchases equal numbers of choice products and regular products, then product availability is improved, but the warehouse storage and handling costs increase
Solution Approach 1:
The patent changes the parameter of product quantity allocation from fixed equal amounts to dynamic quantities determined by simulation. The choice simulator analyzes historical data and current stock levels to determine the optimal number of each product type to purchase, ensuring adequate availability while minimizing excess inventory that would increase storage and handling costs.
Solution Approach 2:
The patent enables the system to self-optimize product purchasing decisions through automated simulation runs. The choice simulator independently determines the ideal product mix and quantities based on observed assignment patterns and customer preferences, eliminating the need for manual inventory planning and reducing waste from over-purchasing.
4Loss of energy
If the vendor uses a limited number of products for subscription combos, then warehouse storage costs are reduced, but the ability to satisfy diverse customer preferences decreases
Solution Approach 1:
The patent applies partial action by offering a limited but optimized number of choice products to each customer rather than all available products. The choice simulator determines the ideal subset of products for each customer based on their preferences and restrictions, providing sufficient variety to satisfy diverse tastes while maintaining a constrained overall product inventory that reduces storage costs.
Data Source
AI summary
A dynamic assignment system or distributed resource allocation system and methods performed therein are disclosed. One method is directed towards determining an assignment of a member to a receiver, where choice product success ratios are received, a new member's choice product scores are received, one choice product is identified as a function of choice product success ratios and the member's choice product scores, one member-receiver score is identified, and the new member is identified as ready for assignment. A second method is directed towards determining a chooser limit of choice products required in the dynamic distributional system, where an assignment of the new member identified as a function of one member-receiver score of one new member choice product is received, whether a chooser limit has been reached for a choice product is determined, and the new member is assigned to the one regular receiver or the one neutral receiver.