5 Merchandise Planning and Optimization Licensing Information

This chapter provides the following licensing information for Merchandise Planning and Optimization.

• Description of products.

• Prerequisite products.

• Entitled products and restricted use licenses.

Prerequisite products, entitled products, and restricted use licenses do not apply to Oracle Retail Cloud products.

Legal Licensing Information

The following table lists the legal licensing information for Merchandise Planning and Optimization.

Retail Solution Unit	Product	Licensing Information
MPO	Assortment Planning	Product Editions and Permitted Features The assortment planning process establishes the breadth and depth of the product offering (including the color/fragrance/flavor and size level), for Points-of-Commerce (stores, sites, applications, catalogs, social commerce networks, wholesale/franchise locations/groups, and so on) and for a given period of time. The analysis of past performance such as color effectiveness, trend adoption, size preferences, customer segmentation, styling visualization, in-store placement, and geographic selling are key inputs into revising a currently planned/executed assortment or building a new assortment. Assortment Planning is a role-based solution enabling each role (Senior Merchant, Buyer/Trader, Planner, and so on) to use the solution to develop, record, and track their assortment decisions and strategies. Entitled Products and Restricted Use Licenses NA
MPO	Predictive Application Server	Product Editions and Permitted Features The Oracle Retail Predictive Solutions are a set of products used for generating forecasts, developing trading plans, and analyzing customer behavior. These products use predictive technology to examine historical data and to predict future behavior. The Oracle Retail Predictive Solutions run from a common platform called the Oracle Retail Predictive Application Server (RPAS) that includes features such as: Multidimensional databases Hierarchical data (product, time, and business location hierarchies) Aggregation and spreading of data Workbooks and worksheets for displaying and manipulating data Wizards for creating and formatting workbooks and worksheets Menus, quick menus, and toolbars Exception management and user-friendly alerts Entitled Products and Restricted Use Licenses This media pack includes a Restricted Use license for Oracle Retail Predictive Application Server (RPAS) - Enterprise Engine to support Oracle Retail Merchandise Financial Planning only.
MPO	Predictive Application Server Allocation and Replenishment	Product Editions and Permitted Features Oracle Retail Predictive Application Server for Allocation and Replenishment (RPAS A&R) acts as a platform for the custom configuration and design of allocation and replenishment processes, calculations, and solutions on Oracle Retail Predictive Application Server (RPAS). These custom configurations are typically created and deployed by Oracle partners, and supported by those partners. Oracle will continue to support the base RPAS platform that the solutions are configured upon, as well as, the user interface (Fusion or Classic Client) used for user experience and interaction. It is important to note that under this license, custom configurations cannot use Oracle processes, code, algorithms, special expressions, or approaches used in other Oracle Retail licensable solutions. Specific allowances and configurable uses are detailed below, strictly defining the boundaries of acceptable use of this license. This license is intended to provide retailers with an allocation or replenishment offering that can meet their business objectives through the partnership of Oracle and the partners that offer the custom solutions on a proven platform for retailers worldwide. The acceptable use of the RPAS A&R license allows configuration of a custom solution that performs Allocation and Replenishment operations. The primary operations involved in allocation and replenishment include: Management of the supply chain network necessary for inventory movement such as order/receiving frequency, lead time, pack size, and order multiple Definition of thresholds and inputs to replenishment or allocation calculations Definition of replenishment method-specific calculations of replenishment boundaries and generation of inventory plans Definition of allocation calculations for sharing/pushing inventory Creation of inventory movements in the form of Purchase Orders, Transfers, or Allocations Definition of user workflow for building and reviewing inventory plans, running simulations, and executing creation of supply chain inventory movements Use of alerts and exception management enabled by core RPAS capabilities The RPAS A&R license prohibits: Definition of Demand Forecasting algorithms, science, or related processes. Such needs require Oracle Retail Demand Forecasting (RDF) to be licensed in addition to RPAS A&R. Processes, calculations, and simulations wi th the aim of optimizing replenishment method selection, inputs, and thresholds. Optimization of replenishment methods, inputs, and thresholds require Oracle Retail Replenishment Optimization (RO) to be licensed in addition to RPAS A&R. Processes, calculations, and retail business decision support covered under solutions offered within the Planning & Optimization business unit. These solutions include, but are not limited to, the following: Assortment Planning, Category Management, Item Planning, and Merchandise Financial Planning. Entitled Products and Restricted Use Licenses This media pack includes a Restricted Use license for Oracle Retail Predictive Application Server (RPAS) - Enterprise Engine to support Oracle Retail Merchandise Financial Planning only.
MPO	Category Management Planning and Optimization and Macro Space Optimization	Product Editions and Permitted Features The Oracle Retail Category Management Planning and Optimization (CMPO) and Macro Space Optimization (MSO) applications collectively support the development of category plans, optimization of total store/department/aisle space allocation, and creation of customer-centric and targeted assortments with optimized product assignments. Processes broadly follow the traditional eight-step Category Management business process, with the inclusion of the consumer segment perspective across various points in the process flow. Most importantly, the application provides a structured, measured set of activities designed to achieve specific business objectives: The Category Planning task enables the retailer to create high-level qualitative and quantitative business plans at the trading area level. The Assortment Planning and Optimization tasks facilitate the creation of SKU-level customer-centric and targeted assortment plans at the cluster and store levels across the retail chain. The Macro Space Optimization tasks facilitate the creation of macro-space plans for optimal space productivity. Entitled Products and Restricted Use Licenses NA
MPO	Item Planning	Product Editions and Permitted Features Oracle Retail Item Planning (IP) is part of an overall planning process that involves planning at multiple levels of the product hierarchy. The planning process is an ongoing process whereby the manner in which each step is completed affects the following step, and prior performance influences plans for future performance. Planning takes input from multiple parties, and good communication enhances the process so that it can help drive a financial road map for success. Multiple versions of the plan are created to benchmark success as well as provide insight to opportunities and risk for the in-season period. Entitled Products and Restricted Use Licenses NA
MPO	Merchandise Financial Planning	Product Editions and Permitted Features Oracle Retail Merchandise Financial Planning (MFP) provides strategic and financial product planning functions. These functions support industry planning standards for preseason and in-season processes. MFP facilitates the creation of financial plans in a structured method through the following processes: Setting and passing targets to lower levels Plan reconciliation among top down, middle out, and bottom up levels Approval of bottom up plans Plan monitoring and maintenance at all levels Re-planning at all levels processes. Entitled Products and Restricted Use Licenses This media pack includes a Restricted Use license for Oracle Retail Predictive Application Server (RPAS) - Enterprise Engine to support Oracle Retail Merchandise Financial Planning only.
MPO	Merchandise Financial Planning Cloud Service	Product Editions and Permitted Features Oracle Retail Merchandise Financial Planning (MFP) Cloud Service provides strategic and financial product planning functions. These functions support industry planning standards for preseason and in-season processes. MFP Cloud Service facilitates the creation of financial plans in a structured method through the following processes: Setting and passing targets to lower levels Plan reconciliation among Merch Targets, Merch Plan, Location Targets, and Location Plan levels Approval of Merch Plan and Location Plan Plan monitoring and maintenance at all levels Replanning at all levels Entitled Products and Restricted Use Licenses NA
MPO	Regular Price Optimization	Product Editions and Permitted Features Oracle Retail Regular Price Optimization (RPO) assists retail price managers in pricing hard-line and grocery items. It is suited for long lifecycle items with infrequent price changes. It recommends permanent prices based on initial estimates of an item's total sales volume over a planning period and on price-related sales of items and related items. RPO includes grouping in its pricing analysis because it considers cross-item elasticities; that is, RPO considers how price changes for one item may affect the sales volume of other items. Users can input objective functions and pricing constraints that define the optimization problem. Once these inputs are defined, the pricing optimizer recommends prices. Multiple scenarios can be created and evaluated side by side, and what-if analysis can be performed within the context of a pricing scenario. After analyzing the what-if results and recommended prices, the user can make a final decision to submit the recommended prices for the given set of merchandise items and locations. RPO integrates with an application called Oracle Retail Analytic Parameter Calculator for Regular Price Optimization (APC-RPO). APC-RPO calculates self and cross-item elasticities, which RPO uses to make price recommendations. APC-RPO is a separate application with its own installer, but it is available as an additional component in the RPO installation media pack. Entitled Products and Restricted Use Licenses NA
MPO	Size Profile Optimization	Product Editions and Permitted Features Oracle Retail Size Profile Optimization (SPO) creates optimized profiles of size distribution by both merchandise category and by store. SPO improves the quality of merchandise at size-level by determining optimized Size Profile and creating Prepacks to match them. This functionality helps downstream applications, an inventory planning application, and a replenishment system, to translate Style Color or similar aggregate-level plans or replenishment strategies into optimized order or buy quantities by stock-keeping units (SKU) at the store level. Size Profile Optimization reduces stock outs and end-of-season markdowns due to size limitations, while maximizing assortment productivity. This ensures that the store shelves are stocked with the right merchandise in the right sizes to meet customer demand. Additionally, Size Profile Optimization enables users to view and approve these optimized size profiles in the Oracle Retail Predictive Application Server (RPAS) interface. Size Profile Optimization is usually an independent activity performed to generate, review, and approve size profiles, and configure prepacks. The frequency of creating size profiles varies by retailer and product area; minimally by season or quarter, and they can be run more frequently if the business needs. Prepack Optimization can be used by Prepack Analysts to determine the optimized combination of prepack configurations to meet individual store-level requirements. While optimizing returns for the retailer, prepack optimization takes into account competing constraints such as presentation minimums, vendor specifications, and storage limitations. The principles driving prepack optimization are: Reducing supply chain handling costs Minimizing misallocation, resulting in lost sales at some stores (under-allocation) and markdowns at other stores (over-allocation) Striking a balance with the complexity due to multiple prepack configurations Entitled Products and Restricted Use Licenses NA

Open Source Software or Other Separately Licensed Software

Required notices for open source or other separately licensed software products or components distributed in the Retail Global Business Unit are identified in the following table along with the applicable licensing information. Additional notices and/or licenses may be found in the included documentation or README files of the individual third party open source software.

Retail Product	Component(s)	Licensing Information
Assortment Planning	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Castor 1.3.3	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons Lang 3.4	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Commons Math 3.6.1	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
	Log4j 2.6.1	Apache 2.0
	Spring Framework 4.2.6	Apache 2.0
Category Management Planning and Optimization, and Macro Space Optimization	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
Item Planning	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
Merchandise Financial Planning	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
Merchandise Financial Planning Cloud Service	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
Regular Price Optimization	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
Retail Predictive Application Server	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Boost 1.61.0	Boost
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	ESAPI 2.1.0.1	ESAPI
	GNU libgcc, libstdc++ 4.4.6	GNU libgcc, libstdc++
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
	JUnit 4.12	Common Public License - v 1.0
	Log4j 1.2.17	Apache 2.0
	POI 3.14	Apache 2.0
	Spring Framework 4.2.5	Apache 2.0
	TinyXML-2 4.0.1	TinyXML-2
	zlib 1.2.3	zlib
Retail Predictive Application Server Allocation and Replenishment	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Boost 1.61.0	Boost
	Commons CLI 1.3.1	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	ESAPI 2.1.0.1	ESAPI
	GNU libgcc, libstdc++ 4.4.6	GNU libgcc, libstdc++
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch
	JUnit 4.12	Common Public License - v 1.0
	Log4j 1.2.17	Apache 2.0
	POI 3.14	Apache 2.0
	Spring Framework 4.2.5	Apache 2.0
	TinyXML-2 4.0.1	TinyXML-2
	zlib 1.2.3	zlib
Size Profile Optimization	Ant 1.9.7	Apache 2.0
	Ant Contrib 1.0b3	Apache 1.1
	Ant Installer 0.8.0	Apache 2.0
	Commons CLI 1.3.1	Apache 2.0
	Commons IO 2.5	Apache 2.0
	Commons Lang 3.4	Apache 2.0
	Commons Logging 1.2	Apache 2.0
	Commons Math 3.6.1	Apache 2.0
	Incanto 0.2.4	Apache 2.0
	JSch 0.1.54	JSch