C Appendix: Promotion and Markdown Pricing Optimization Rules

This table provides information about the Promotion and Markdown Pricing Optimization rules. These rules are separate from the Regular Pricing rule set in Appendix D.

Rule Category RULE_NAME Rule Description Type
Budget PRO_BUDGET_FLG Allocate Budget SWITCH - Yes/No
  PRO_BUDGET_INCL_PLAN_PROMO_FLG Planned Promotions Included in Budget SWITCH - Yes/No
  PRO_BASE_TOTAL_BUDGET Total Budget for Base Scenarios NUMBER
Exit Date ABSOLUTE_EXIT_DATE Date that an item must exit by. DATE
  REFERENCE_DATE_TYPE_FOR_EXIT

Reference Date (Choose Options)

  • Model Start Date

  • First Receipt Date

Final Shipment Date

RADIO BUTTON
  EXIT_FISCAL_WEEK

Specify the weeks to exit or fiscal week for exit (Choose Options)

  • All Start Months

  • Each Start Month Separately

Exit Fiscal Week

RADIO BUTTON, followed by NUMBER depending on the option chosen
Goal PRO_PRICING_OBJECTIVE

Choose one of the objectives:

  • Maximize Revenue

  • Maximize Gross Margin

  • Maximize Revenue from Salvage

Maximize Gross Margin from Salvage

RADIO BUTTON
Post-Processing PRO_RUNG_TIER_DISC_PCT The descriptions and ranges for the discount tier labels PERCENTAGE
Sell-Through MIN_OH_INV_PCT Minimum on hand inventory threshold percentage for the item to be eligible for a recommendation PERCENTAGE
  PRO_SALVAGE_VALUE Salvage value of the product after the season ends (default is 0) PERCENTAGE
  PRO_ST_HARD_TGT_FLG Default value for sell-through hard target flag Yes/No
  PRO_ST_END_REGULAR_SEASON Percentage of sell-through for each individual product at end of regular periods PERCENTAGE
  PRO_ST_END_CLEARANCE_SEASON Percentage of sell-through for each product at end of clearance season PERCENTAGE
Targeted Offer PRO_OFFERMAX Maximum No. of Offers NUMBER
Temporal PRO_TR_NO_TOUCH_END_LIFE No touch period at the end of life NUMBER (1-52)
  PRO_TR_NO_TOUCH_AFTER_LANDING No touch period after landing  NUMBER(1-52)
Pricing Group MKDN_ALL_NOTHING Markdown all or nothing Yes/No
  MKDN_NONE No markdown Yes/No
  PROM_ALL_NOTHING

Promote all or nothing

Yes/No
  PROM_ATMOST_ONE Promote at most one Yes/No
  SAME_PROMO_MKDN_DISC Impose same promotion and markdown discount Yes/No
  PRO_SAME_PRICING_TOLERANCE Percentage difference allowed between two or more product for same Pricing Group

PERCENTAGE

  SAME_MKDN_DISC Impose same markdown discount Yes/No
  SAME_PROMO_DISC Impose same promotion discount Yes/No
  PROM_NONE No promotion Yes/No
Markdown PRO_MAX_ABSOLUTE_MKDN Absolute maximum discount percentage for markdowns over the entire season PERCENTAGE
  PRO_MR_MKDN_START_DAY Day of the week markdown starts DAYS OF THE WEEK
  PRO_TR_LENGTH_OF_MKDN Length of markdown as a percentage of the whole season PERCENTAGE
  PRO_MR_MIN_COST Markdown recommendations at least equal to the cost of the product Yes/No
  PRO_MR_ABS_MAX_MKDN_DISC_PCT Maximum absolute markdown discount percentage PERCENTAGE
  PRO_MR_OTHER_MKDN_MAX_DISC_PCT Maximum discount percentage for markdowns other than the first one PERCENTAGE
  PRO_MR_FIRST_MKDN_MAX_DISC_PCT Maximum discount percentage for the first markdown PERCENTAGE
  PRO_MR_MAX_NUM_MKDN Maximum number of markdowns allowed for an item in the life or season NUMBER
  PRO_MR_OTHER_MKDN_MIN_DISC_PCT Minimum discount percentage for markdowns other than the first one PERCENTAGE
  PRO_MR_FIRST_MKDN_MIN_DISC_PCT Minimum discount percentage for the first markdown PERCENTAGE
  PRO_MIN_NUM_OF_MKDN_ITEMS Minimum number of markdown items NUMBER
  PRO_MR_MIN_TIME_BETWEEN_MKDN Minimum time separation between any two consecutive markdowns NUMBER
Promotion PRO_PR_PROMO_END_DAY Day of the week promotions ends DAYS OF THE WEEK
  PRO_PR_PROMO_START_DAY Day of the week promotions starts DAYS OF THE WEEK
  PRO_PR_FIRST_PROMO_MAX_DISC_PCT Default maximum discount percentage for the first promotion PERCENTAGE
  PRO_PR_FIRST_PROMO_MIN_DISC_PCT Default minimum discount percentage for the first promotion PERCENTAGE
  PRO_TR_LENGTH_OF_PROMOTIONS Length of promotion as a percentage of the whole season PERCENTAGE
  PRO_PR_OTHER_PROMO_MAX_DISC_PCT Maximum discount percentage for promotions other than the first one PERCENTAGE
  PRO_TR_MAX_LENGTH_OF_PROMOTION Maximum length (weeks) of a promotion NUMBER
  PRO_PR_MAX_NUM_PROMO Maximum number of promotions allowed for an item in the life or season NUMBER
  PRO_PR_OTHER_PROMO_MIN_DISC_PCT Minimum discount percentage for promotions other than the first one PERCENTAGE
  PRO_MIN_NUM_OF_PROMO_ITEMS Minimum number of promotion items NUMBER
  PRO_PR_MIN_TIME_BETWEEN_PROMOS Minimum time separation between any two consecutive promotions NUMBER
  PRO_PR_MIN_COST Promotions recommendations cannot be lower than the cost of the product. Yes/No