Returned Product Grading via Hierarchical Model Pricing

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Solution Overview

Problem

Conventional inventory management systems are inefficient in pricing returned products, often relying on arbitrary discounts or original prices, leading to inconsistent valuations that do not reflect the true condition of the products, resulting in reduced profit margins and decreased value over time.

Innovation Solution

A system that grades returned products by generating a hierarchical model based on product identifiers, traversing data structures to assess product condition, and determining a price accordingly, allowing for dynamic pricing adjustments based on the product's condition.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If conventional inventory management systems use arbitrary discounts or original prices for returned products, then the pricing process is simple and fast, but the pricing accuracy does not reflect the true condition of the products

Engineering Contradiction:
Improvepricing accuracyVSAvoidsystem complexity
Core Design Contradiction:
Measurement precisionVSDevice complexity

Solution Approach 1:

The system segments the pricing process into multiple hierarchical levels: product identification, condition assessment, grading category determination, and price calculation. Each level handles specific aspects of evaluation, allowing complex pricing logic to be broken down into manageable, modular components that can be independently developed and maintained.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces an intermediary grading system that acts as a mediator between the physical product condition and the final price. The system uses intermediate representations such as condition scores, grading categories, and standardized metrics to translate physical attributes into pricing decisions, enabling accurate pricing without requiring direct complex connections between all evaluation parameters.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Measurement precision

If returned products are graded using detailed condition assessment, then the true value of products is accurately determined, but the processing time and labor costs increase

Engineering Contradiction:
Improveproduct condition assessment accuracyVSAvoidprocessing time
Core Design Contradiction:
Measurement precisionVSLoss of time

Solution Approach 1:

The system performs preliminary actions by pre-establishing grading criteria, condition thresholds, and pricing rules before actual product assessment. Product conditions are pre-categorized into standardized grades, and pricing algorithms are pre-configured based on historical data and market conditions, enabling rapid evaluation without re-evaluating all parameters for each product.

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The patent replaces manual mechanical assessment processes with automated electronic systems including image recognition, sensor-based condition detection, and algorithmic pricing determination. This substitution eliminates the need for manual inspection and calculation, maintaining high assessment accuracy while dramatically reducing processing time and labor requirements.

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

3Measurement precision

If returned products are held in inventory for extended periods, then adequate time is available for thorough grading and pricing, but the value of the products decreases over time

Engineering Contradiction:
Improvegrading thoroughnessVSAvoidproduct value degradation
Core Design Contradiction:
Measurement precisionVSLoss of energy

Solution Approach 1:

The system implements continuous useful action through automated 24/7 operation capabilities, allowing product grading and pricing to occur continuously without interruption. Multiple assessment methods operate in parallel and products can be rapidly cycled through the grading process, eliminating idle time and ensuring that thorough evaluation does not result in extended inventory holding periods.

Inventive Principle:
Principle #20Continuity of useful action

Data Source

PatentUS11763255B2Computerized systems and methods for managing inventory by grading returned products
Publication Date: 2023.09.19 COUPANG CORP
  • US11763255B2 patent drawing
  • US11763255B2 patent drawing
  • US11763255B2 patent drawing

AI summary

Systems and method are provided for managing inventory by determining grading returned products. One method includes, generating a hierarchical model based on the return product identifier, the hierarchical model comprising a plurality of data structures; and generating an agent configured to traverse the plurality of data structures of the hierarchical model. The method may further include determining a price of the product based on a product condition; modifying the database to assign the price to the return product identifier; transmitting a notification, to the user device, to resell the product at the determined price; and providing, for presentation via the user device, a user interface that includes the notification.