Method and system for determining price markdown schedule

Abstract

Markdown optimization may be performed using a computer system. Markdown objectives may include margin maximization or inventor minimization. Markdown schedule optimization uses an efficient, iterative, targeted combinatorial search. First, permissible discount steps are identified, then for each permissible discount step, a subspace of permissible step dates is identified. Elements from the date step subspace and price reduction subspace are combined and evaluated against the markdown objectives. If an improved markdown schedule is located, a new subspace of permissible step dates is defined to search the subregion of the solution space where the improved markdown optimization schedule was identified. Scheduling of inventory allocation from a distribution center is also disclosed.