Pricing Optimization Rules in LPO

Pricing rules are the building blocks of price recommendations. They define specific conditions that must be met when determining a price, ensuring compliance with business objectives such as margin protection, competitive positioning, or price consistency. The list of rules can be found in RSE_APPL_RULE_PROPERTY table.

Regular Pricing rules are classified as Forecast-based (F) or Non-Forecast-based (N/F). Regular Lite uses only N/F rules, while Regular Full uses both F and N/F rules. If Forecast-based rules are included in a strategy used for a Regular Lite run, they will be ignored.

Figure 4-1 Control and Tactical Center - Regular Rule Categories - Forecast or Non/Forecast

To list only the Non-Forecast based rules, set RSE_CONFIG.PRO_LPO_REGULAR_LITE_ENABLED_FLG to Y.

For the complete list of Promotion Markdown rules and strategies, see Appendix: Promotion and Markdown Pricing Optimization Rules. For Regular Pricing rules and strategies, see Appendix: Regular Pricing Optimization Rules.

The pricing rules in LPO are built using rule criteria and rule values. For Regular Pricing, each rule value displays F or N/F to indicate Forecast or Non-Forecast based respectively.

Figure 4-2 Control and Tactical Center - Regular Rule Values Example - Forecast or Non/Forecast