A Appendix: Regular Pricing Optimization Rules
This appendix provides the Non-Forecast (N/F) Regular Pricing rule categories available in Rules Based Regular Pricing. Each subsection describes the rule category and lists the supported rule codes.
A.1 Pack Pricing Rules
Enforce price relationships between single-item and multi-unit pack presentations, ensuring pack prices represent a genuine saving versus buying individual units.
Table A-1 A-1 Pack Pricing Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_SIMPLE_PACK_SELLABLE | Total price of a simple pack must be lower than the total single-unit price by at least a fixed amount. |
| RPO_SIMPLE_PACK_SELLABLE_PCT | Total price of a simple pack must be lower than the total single-unit price by at least a specified percentage. |
| RPO_COMPLEX_PACK_SELLABLE | Total price of a complex pack must be lower than the sum of its component prices by at least a fixed amount. |
| RPO_COMPLEX_PACK_SELLABLE_PCT | Total price of a complex pack must be lower than the sum of its component prices by at least a specified percentage. |
A.2 Competitor and Market Alignment Rules
Ensure that an item's regular price is positioned at the correct distance above or below a key competitor's price. Among the most commonly used rules in operational pricing.
Table A-2 A-2 Competitor and Market Alignment Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_COMP_MATCH_HIGHER | Item price must be higher than the competitor price by at least a fixed amount. |
| RPO_COMP_MATCH_HIGHER_PCT | Item price must be higher than the competitor price by at least a specified percentage. |
| RPO_COMP_MATCH_LOWER | Item price must be lower than the competitor price by at least a fixed amount. |
| RPO_COMP_MATCH_LOWER_PCT | Item price must be lower than the competitor price by at least a specified percentage. |
A.3 Cost Change Rules
Automate the pass-through of supplier cost changes to the item's regular price, preserving margin integrity when procurement costs shift.
Table A-3 A-3 Cost Change Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_COST_CHANGE | If the item cost increases or decreases by a specified amount, the regular price must change accordingly. |
| RPO_COST_PCT_CHANGE | Specifies the percentage of a cost change to pass on to the regular price. A value of 100% reflects the full cost change in the item price. |
A.4 Margin Rules (List Margin)
Enforce profitability constraints at both individual item and group levels using list margin thresholds.
Item-Level List Margin Rules:
Table A-4 A-4 Item-Level List Margin Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_LIST_MARGIN_ITEM_MIN | List margin for each item must be at or above a specified fixed value. |
| RPO_LIST_MARGIN_ITEM_MIN_PCT | List margin for each item must be at or above a specified percentage. |
| RPO_LIST_MARGIN_ITEM_MAX | List margin for each item must be at or below a specified fixed value. |
| RPO_LIST_MARGIN_ITEM_MAX_PCT | List margin for each item must be at or below a specified percentage. |
Group-Level List Margin Rules:
Table A-5 A-5 Group-Level List Margin Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_LIST_MARGIN_MIN | Aggregate list margin across a group of items must be at or above a specified value. |
| RPO_LIST_MARGIN_MIN_PCT | Aggregate list margin across a group of items must be at or above a specified percentage. |
| RPO_LIST_MARGIN_MAX | Aggregate list margin across a group of items must be at or below a specified value. |
| RPO_LIST_MARGIN_MAX_PCT | Aggregate list margin across a group of items must be at or below a specified percentage. |
A.5 Price Range Rules
Constrain the absolute price of an item and the magnitude of price changes, preventing extreme price movements between recommendation cycles.
Table A-6 A-6 Price Range Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_PRICE_MIN | Item price must be at or above a specified floor price. |
| RPO_PRICE_MAX | Item price must be at or below a specified ceiling price. |
| RPO_LAST_REG_PRICE_MIN_CHANGE | Minimum absolute price change required versus the last known regular price. |
| RPO_LAST_REG_PRICE_MAX_CHANGE | Maximum absolute price change permitted versus the last known regular price. |
| RPO_LAST_REG_PRICE_MIN_PCT_CHANGE | Minimum percentage price change required versus the last known regular price. |
| RPO_LAST_REG_PRICE_MAX_PCT_CHANGE | Maximum percentage price change permitted versus the last known regular price. |
A.6 Pricing Group Rules: Within-Group Consistency
Enforce price relationships among items or locations within a named group, ensuring price consistency across an assortment or geography.
Table A-7 A-7 Pricing Group Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_WTHN_GROUP_DIFF_TOLERANCE | Items within a group must have similar prices within a fixed tolerance. Set to 0 to enforce identical prices. |
| RPO_WTHN_GROUP_DIFF_TOLERANCE_PCT | Items within a group must have similar prices within a percentage tolerance. |
| RPO_WTHN_GROUP_AVERAGE_TOLERANCE | Item prices must be close to the group's average current regular price within a fixed tolerance. |
| RPO_WTHN_GROUP_AVERAGE_TOLERANCE_PCT | Item prices must be close to the group average within a percentage tolerance. |
| RPO_WTHN_GROUP_HIGHEST_TOLERANCE | Item prices must be close to the group's highest current regular price within a fixed tolerance. |
| RPO_WTHN_GROUP_HIGHEST_TOLERANCE_PCT | Item prices must be close to the group's highest price within a percentage tolerance. |
| RPO_WTHN_GROUP_LOWEST_TOLERANCE | Item prices must be close to the group's lowest current regular price within a fixed tolerance. |
| RPO_WTHN_GROUP_LOWEST_TOLERANCE_PCT | Item prices must be close to the group's lowest price within a percentage tolerance. |
| RPO_WTHN_ZONE_DIFF_TOLERANCE | Locations within a group must have similar prices for the same item within a fixed tolerance. Set to 0 to enforce zone-wide price equality. |
A.7 Inter-Item Rules
Enforce price relationships between two named sets of items (Set A and Set B). Used to maintain good-better-best pricing tiers or prevent price inversion within a related product family.
Table A-8 A-8 Inter-Item Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_INTER_ITEM_DIFF_MIN | Items in Set A must be priced at least a fixed amount above items in Set B. |
| RPO_INTER_ITEM_DIFF_MIN_PCT | Items in Set A must be priced at least a specified percentage above items in Set B. |
| RPO_INTER_ITEM_DIFF_MAX | Items in Set A must not be priced more than a fixed amount above items in Set B. |
| RPO_INTER_ITEM_DIFF_MAX_PCT | Items in Set A must not be priced more than a specified percentage above items in Set B. |
A.8 Inter-Location Rules
Enforce regular price relationships for the same item across two different locations or price zones (Location A and Location B). Used to manage price differentials between channels, regions, or market tiers.
Table A-9 A-9 Inter-Location Rules
| Rule Code | What It Enforces |
|---|---|
| RPO_INTER_LOC_DIFF_MIN | The same item in Location A must be priced at least a fixed amount above the same item in Location B. |
| RPO_INTER_LOC_DIFF_MIN_PCT | The same item in Location A must be priced at least a specified percentage above Location B. |
| RPO_INTER_LOC_DIFF_MAX | The same item in Location A must not be priced more than a fixed amount above Location B. |
| RPO_INTER_LOC_DIFF_MAX_PCT | The same item in Location A must not be priced more than a specified percentage above Location B. |