Oracle Corporation
Inventory Allocation and Pricing Optimization System

Abstract:

Embodiments optimize the inventory allocation of a retail item that is provided from a plurality of warehouses to a plurality of price zones, each of the warehouses adapted to allocate inventory of the retail item to at least two of the price zones via links. Embodiments generate an initial inventory allocation for each warehouse to price zone link to generate a plurality of warehouse to price zone allocations. For each of the warehouse to price zone allocations, embodiments determine a marginal profit as a function of inventory allocated. Embodiments construct a bi-partite graph corresponding to each warehouse to price zone allocation, each bi-partite graph having a link weight equal to the marginal profit. Embodiments determine when there is a positive weight path between any two price zones and then reallocate the initial inventory allocation and repeat the functionality.