Method and system for managing clearance items

Patent metadata

Field	Value
Publication number	US-11238482-B1
Application number	US-201916530064-A
Country	US
Kind code	B1
Filing date	Aug 2, 2019
Priority date	Aug 2, 2019
Publication date	Feb 1, 2022
Grant date	Feb 1, 2022

Abstract

Methods and systems for generating an optimal clearance schedule for inventory items in a retail enterprise. A method includes accessing historical sales data for a plurality of inventory items in a department of a retailer. A selection of an item is received and a set of possible discount schedules for the item are generated. Each schedule includes a set of prices and a price duration. A forecasting tool provides a sales performance of the item based on the historical sales data. An optimal clearance schedule is selected from the possible discount schedules.

First claim

The invention claimed is:

1. A system for managing clearance inventory items of an enterprise system, the system comprising:
a computing system including a processor, and a memory communicatively coupled to the processor, the memory storing instructions executable by the processor, including a clearance scheduling tool which, when executed, causes the computing system to:
receive a selection of an inventory item for clearance, the inventory item being included in a collection of inventory items of a department of a retailer, the inventory item being different from a plurality of related inventory items;
receive historical sales data including sales data for product markdowns for the plurality of related inventory items in the department, the historical sales data not including sales data for the inventory item for clearance, the department including the collection of inventory items including the plurality of related inventory items;
generate a set of possible discount schedules for the item, each possible discount schedule of the set defining a set of prices and associated price durations, the prices representing progressive, decreasing discounts between a retail price and a predetermined sales level based at least in part on a salvage value of the inventory item;
for at least some of the possible discount schedules, provide the discount schedule to a sales forecast tool that provides a sales performance of the item based on the historical sales data for the plurality of related inventory items in the department;
select an optimal selloff schedule for the inventory item from among the possible discount schedules based on comparison of the sales performance of the possible discount schedules; and
display an output including the selected optimal selloff schedule and a predicted sales forecast for the inventory item, wherein selecting the optimal selloff schedule is performed in response to user selection of a selloff schedule maximizing revenue obtained for the inventory item.

2. The system of claim 1 , wherein the sales forecast tool generates a sales forecast for items that are not restocked by the retailer.

3. The system of claim 2 , wherein the sales forecast tool exposes an application programming interface (API) accessible by the clearance scheduling tool.

4. The system of claim 2 , wherein the clearance scheduling tool is further configured to receive a time definition representing an overall time within which the optimal selloff schedule will be executed.

5. The system of claim 4 , wherein the time definition includes at least one of an end date or an elapsed time.

6. The system of claim 2 , wherein the clearance scheduling tool is further configured to receive a clearance program type selected from among digital clearance, seasonal clearance, or in-store clearance.

7. The system of claim 6 , wherein the clearance program type comprises digital clearance and the clearance scheduling tool is further configured to receive a shipping cost of the inventory item.

8. The system of claim 2 , wherein the predetermined sales level is a maximum markdown percentage based, at least in part, in a salvage value of the inventory item.

9. The system of claim 2 , wherein the clearance scheduling tool is configured to generate a user interface configured to receive the selection of the inventory item and, in response, display at least the optimal selloff schedule.

10. The system of claim 9 , wherein the clearance scheduling tool is configured to receive an option from a user to minimize salvage as part of the optimal selloff schedule.

11. The system of claim 2 , wherein the clearance scheduling tool is configured to provide the discount schedule to the sales forecast tool for fewer than all of the set of possible discount schedules.

12. The system of claim 11 , wherein one or more discount schedules are excluded from the set of possible discount schedules provided to the sales forecast tool based at least in part on a determination that the one or more discount schedules are unlikely to correspond to the optimal selloff schedule.

13. The system of claim 2 , wherein the sales forecast tool generates a sales forecast for items that are not restocked by the retailer.

14. The system of claim 2 , wherein the sales forecast tool models an exponential decay in remaining inventory at each of a plurality of price points included in each possible discount schedule.

15. A method of determining an optimal selloff schedule for a clearance inventory item, the method comprising:
receiving, at a clearance schedule tool, a selection of an inventory item for clearance, the inventory item being included in a collection of inventory items of a department of a retailer, the inventory item being different from a plurality of related inventory items;
accessing, at the clearance scheduling tool, historical sales data including sales data for product markdowns for the plurality of related inventory items in a department of an enterprise system, the historical sales data not including sales data for the inventory item for clearance, the department including the collection of inventory items including the plurality of related inventory items;
generating a set of possible discount schedules for the item, each possible discount schedule of the set defining a set of prices and associated price durations, the prices representing progressive, decreasing discounts between a retail price and a predetermined sales level based at least in part on a salvage value of the inventory item;
for at least some of the possible discount schedules, providing the discount schedule to a sales forecast tool that provides a sales performance of the item based on the historical sales data for the plurality of related inventory items in the department;
selecting an optimal selloff schedule for the inventory item from among the possible discount schedules based on comparison of the sales performance of the possible discount schedules; and
displaying an output including the selected optimal selloff schedule and a predicted sales forecast for the inventory item, wherein selecting the optimal selloff schedule is performed in response to user selection of a selloff schedule maximizing revenue obtained for the inventory item.

16. The method of claim 15 , further comprising displaying, via the clearance scheduling tool, a clearance program definition screen including an identification of an inventory item, and a duration of a clearance program.

17. The method of claim 16 , wherein the clearance program definition screen further includes an identification of a clearance program type selected from among digital clearance, seasonal clearance, or in-store clearance.

18. The method of claim 15 , wherein the clearance scheduling tool is configured to, based on the inventory item selected, determine a salvage value of the inventory item.

19. A system for managing clearance inventory items of an enterprise system, the system comprising:
at least one computing system comprising a processor and a memory communicatively coupled to the processor, the memory storing instructions executable by the processor, including a clearance scheduling tool which, when executed, causes the computing system to:
receive a selection of an inventory item for clearance alongside a clearance program type and a clearance program duration, the inventory item being included in a collection of inventory items of a department of a retailer, the inventory item being different from a plurality of related inventory items;
receive historical s

Assignees

• Target Brands Inc

Inventors

• Gaynor James
• Le Luyen
• Bhattacharya Saibal
• Wongchaowart Brian
• Badri Hamidreza
• Tokar-Erdemir Elif
• Pu Xiao

Classifications

• G06Q30/0235 Primary

  constrained by time limit or expiration date · CPC title

• G06Q30/0223 Primary

  based on inventory · CPC title

• G06Q30/0202

  Market predictions or forecasting for commercial activities · CPC title

• G06Q10/0875

  Itemisation or classification of parts, supplies or services, e.g. bill of materials · CPC title