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4 LPO Rules and Strategies
Pricing rules and strategies in LPO form the foundation for generating optimized price recommendations. Strategies combine multiple rules that support business objectives, such as maximizing margin, staying competitive, or clearing inventory.
Each rule sets specific conditions or constraints, including minimum margin thresholds, price change limits, or competitive price alignment. You can configure, review, and manage these rules to ensure that recommendations align with your pricing goals. LPO applies these strategies during optimization runs to drive consistent, data-driven pricing decisions.
You create rules and strategies for LPO from the Control and Tactical Center in the Oracle Retail AI Foundation Cloud Service. For further details, see the “Control and Tactical Center” chapter in the Oracle Retail AI Foundation Cloud Service Implementation Guide .
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. You can find the full list of rules in the RSE_APPL_RULE_PROPERTY table.
| RulesCategory | < |
|---|---|
| Summary | 69] |
| Promotion/Markdown | “A |
| Budget | 6 |
| ExitDate | 2) |
| Goal | al |
| Post-Processing | 1 |
| PricingGroup | 7) |
| Sell-Through | i) |
| Targeted Offer | 10) |
| Temporal | |
| Markdown | “A |
| Markdown | 8 |
| Promotion | “A |
| Promotion | 8 |
| Regular | v | |
|---|---|---|
| CompetitorandCPI | F | i) |
| CostChange | N/F | (a) |
| Objective | F | @ |
| Inter-Item | N/F | Ui) |
| Inter-Loc/PZ | N/F | 0] |
| MarginforGroup | F | 0] |
| Marginfor Item | F | 7) |
| PackPricing | N/F | 0] |
| PriceRange | N/F | 6 |
| RevenueforGroup | F | Gi |
| RevenueforItem | F | 4) |
| PricingGroup | N/F | 0] |
| VolumeforGroup | F | @ |
| VolumeforItem | F | 4) |
Rule Value
CreateCriteriaRule ‘ 4: Create RuleValue BuildRule ’ 4 ReviSav e wRule and Merchandise: Department > Minimum % for the first Rule Criteria and Rule Values Review and save the rule to be Women’s Activewear promotion: 20% can be combined and built to applied within a business … Price form a rule based on the strategy, which will then be Zone: United States Minimum % for the . 5 business scenario. used to create a What-If run pricelzonerGrodnapaieny subsequent promotions: 10% for optimization and generate Zone Group Total Budget: $20,00,000 pricejrecommendations: Product Group: Brand - Sunset Set Exit Date: 30/09/2025
-— Season (E.g 2024 Summer, ALL)
| -— Is rule season specific (# ALL)? | | [Yes + &@ Higher priority | | t— No (ALL) + A Lower priority
[— Rule Set (or Strategy) | [— Is rule set specified (* DEFAULT_SET)? | | Yes + &@ Higher priority | | ‘—No (DEFAULT_SET) + & Lower priority |— Product Hierarchy (bottom + top) | j— Size + Color + Style + Sub Class ~ Class + Department ~ Group + Division + Company | [| — Closer to item? | | Yes + Higher priority | | tL No + & Lower priority | -— Location Hierarchy (bottom + top) | [| Location + District + Region + Area + Chain + Company | [;— Closer to location? | | -~ Yes + & Higher priority | | tL —No = & Lower priority [— Price Zone (E.g. United States) | [Is rule defined for a specific price zone? | | -~ Yes + @ Higher priority | | No (ALL) + A Lower priority | [-— Price Zone Group (E.g. Primary) | [+ Is rule defined for a specific price zone group? | | ; Yes + & Higher priority | | t— No (ALL) + A Lower priority
» FINAL: Rule with highest rank is selected
| — Absolute Exit Date | -;- Exists? | | - Yes + @ Select Absolute Exit Date (STOP) | | tL —No + Reference Date + Weeks_to_Exit_@ (ALL Months) [| i | Exists? i il | ;& Yes + @ Select this rule (STOP) i oa | UL8 No + Reference Date + Weeks_to_Exit_1..12 (Each Month) | | }— Exists? ji i | | [Yes + @ Select this rule (STOP) fi i | | No + Reference Date + Exit Fiscal Week fi il | | |-— Exists? i il | | | Yes + & Lowest priority + Select this rule (STOP) |! il | | | L—No + X No Exit Date Rule Applied | L_._ FINAL: Highest priority available configuration is selected
Rule Value
How Rule Change Affects Runs
When a run is created, LPO captures the current submitted rules at that moment and uses them to generate all recommendations. Editing a rule after a run has been created has no effect on that run’s results. Any recalculation or re-optimization will use the rule values from the original run creation time, not the edited values.
Best practice: Submit all necessary rule changes first, then launch a new scenario to ensure the updated rules are fully applied.
In this guide
- Guide: Lifecycle Pricing Optimization User Guide
- Previous: 3 LPO Run Overview
- Next: Markdown - What-If Run