Oracle Retail Knowledge Base

Build the LPO business rules

2 min read

Context

Business rules constrain what LPO is allowed to recommend — minimum markdown percentage, exit date, sell-through targets, price ranges. They are built in the UI, not loaded from a file, and are part of Build the LPO application.

Navigate AI FOUNDATION CLOUD SERVICE > TOP LEFT MENU > Tasks > Control and Tactical Center > Manage Rules, tab Manage Pricing Optimization Rules.

Screenshot: Manage Pricing Optimization Rules screen — Rules Category panel on the left (Summary, Promotion/Markdown, Markdown, Promotion, Regular) and the Summary chart on the right.

Rules are snapshotted when a run is created

LPO captures whichever rules are submitted at the moment a run is created and uses them for every recommendation in that run. Editing a rule afterward does not change that run — only a new run picks it up. Finish all rule changes before creating the runs in Build the LPO application.

Build a rule

  1. Pick a category on the left panel:
    • Promotion/Markdown — Budget, Exit Date, Goal, Post-Processing, Pricing Group, Sell-Through, Targeted Offer, Temporal.
    • Markdown — markdown-only variants of the above.
    • Promotion — promotion-only variants.
    • Regular — Competitor and CPI, Cost Change, Objective, Inter-Item, Inter-Loc/PZ, Margin, Pack Pricing, Price Range, Revenue, Volume.
  2. Under Rule Builder, set Rule Criteria first — merchandise level, location level, price zone, season, rule set.
  3. Set Rule Value for the limit itself, such as minimum markdown percentage or exit date.
  4. Review and save.

Saved rules land in PRO_OPTIMIZATION_RULES, the same table the PRO_OPTIMIZATION_RULE_STG file interface writes to.

Rule sets and priority

Define the baseline rules in DEFAULT_SET, the strategy batch runs fall back to. Every item needs to find an applicable rule, so keep a rule at the highest level for each category in use.

Between two rules that both apply, the more specific one wins — a rule tied to a season, a product level closer to the item, a location closer to the store, a price zone, or a non-default rule set outranks a broader one.

Validate

select * from PRO_OPTIMIZATION_RULES;

Reference

Graph View

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