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populate the Strategy screens. The Strategy stage is organized into seven tabs: Temporal, Planned Events, Promotion, Markdown, Sell-Through Target, Price Ladder, and Pricing Groups.
Each screen is generally divided into two panels:
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Summary (left, with a General Strategy button)
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The Summary panel displays a summary of all rules specified at different merchandise levels. When you save or optimize the run, the system uses default values to populate rules at the run’s product processing level (for example, Class). This panel is read-only and cannot be edited.
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By clicking the General Strategy button, you can open a pop-up window where you specify a constraint at the run level. This applies the rule to all locations and all product processing levels (such as all classes) in the run. All product processing levels inherit the values defined in the General Strategy section.
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When the system sends the rules to optimization, lower merchandise-level rules override higher merchandise-level rules. For example, if a department-level rule sets the minimum discount percent at 10%, all items in all classes use this criterion. If you then add a style-level rule with a 20% minimum, items in that style will have the 20% rule, while all others remain at 10%.
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Contextual Area (right, expands when you click the icon)
- The contextual area displays a pie chart that shows the percentage of rules specified at different merchandise levels.
Rules - Temporal
The following figures illustrate how to specify business rules related to the temporal aspects of the pricing problem.
Promotion and markdown eligibility for periods is defined in the PRO_SEASON_PERIOD_STG interface, and the run is populated as follows:
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Default values at the run merchandise processing level (for example, class) are populated based on the interface.
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The interface allows you to specify the general promotion, markdown, and ineligible periods at the run’s product processing level or higher. For each period, you can define the type of pricing change allowed through this interface. When period eligibility is sent to optimization, any ‘no-touch’ constraints are applied in addition to the period eligibility set by the interface.
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You can modify no-touch periods at the beginning and end of life for all classes directly in the UI by clicking the General Strategy button in the table toolbar, as shown in the second figure below.
| Department 0003-Wome Temporal Plann — Promotion and Mar | ns Activewear REGION 42-US ed Events Promotion kdown Item Limits Per Pe | Western Region(WE Markdown riod | R) Price Zone -1-RetailerLtd Strategy DEFAU Sell-through Target PriceLadder | LT_SET EffWee ProductGr | k 2017-05-21 oups | x Distribution ofPromotion and MarkdownItemLimits | |
|---|---|---|---|---|---|---|---|
| Actions v View | Vv < oh VY | 4 Detach | GeneralStrategy | ||||
| WeekEndingDate | Merchandise | MerchandiseL | evel Peieteat Max..No. | .ofPromo | Mavietaam meine | Mim..No. ¢ | |
| 04/30/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 05/07/17 | FitnessStudioApparel | Class | 0002 | 6 | 6 | ay | |
| 05/14/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 05/21/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 05/28/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 06/04/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 06/11/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 06/18/17 | FitnessStudioApparel | Class | 0002 | 6 | 6 | Distribution ofPromotionandMarkdownItem Limits noe | |
| 06/25/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 07/02/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 07/09/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 07/16/17 | Fitness Studio Apparel | Class | 0002 | 6 | 6 | ||
| 07/23/17 | FitnessStudio Apparel | Class | 0002 | 6 | 6 |
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The fields available are described in the following table.
Table 5-7 Promo/Mkdn Run - Rules -Promotion Strategy
| Field | Description |
|---|---|
| Merchandise | Description of the merchandise. |
| Merchandise External Code | The merchandise’s external code that can be identified by the retailer. |
| Merchandise Level | Merchandise level of the rule. This can be from PRO_PROD_HIER_PROCESSING_LVL (for example, Class) to Subclass, or Style/Color. |
| Max No. of Promotions | Maximum number of promotions allowed for an item in the life or season. |
| Min First Promotion | The minimum discount that is allowed for the first promotion in the season. The default value (for example) is 0%. |
| Max First Promotion | The maximum discount that is allowed for the first promotion in the season. The default value (for example) is 100%. |
| Min Other Promotion | The minimum discount that is allowed for the subsequent promotions (except the first) in the season. The default value (for example) is 0%. |
| Max Other Promotion | The maximum discount that is allowed for the subsequent promotions (except the first) in the season. The default value (for example) is 100%. |
| Min Time Between Promotions | The minimum time (in periods or weeks) between consecutive promotions in the season. If there are four months in the promotion season, and the min time is four weeks, then roughly one promotion. |
Rules - Markdown
In this screen, shown in the following figures, you can specify the rules associated with markdowns.
The default values that are populated for this run, such as General Strategy, are based on the DEFAULT_SET strategy or selected strategy in the Scope stage. The retailer can choose to modify the values during implementation.
The contextual area shows the percentage of rules specified by the merchandise level (for example, the percentage specified at Class versus Subclass versus Style/Color level).
Table 5-8 Promo/Mkdn Run - Rules - Markdown Strategy
| Field | Description |
|---|---|
| Daily Weights | Represents the proportion of weekly demand for each day. Used to spread the weekly forecast into daily forecasts, depending on promotion applicability (for example, Thu-Sun). Generated by LPO forecasting or supplied through the interface. |
| Markdown Start Day | Indicates when markdowns can begin within a week. The default (for example, Thursday) is set in the DEFAULT_SET strategy or the selected strategy in the Scope stage. |
| Max Absolute Markdown Discount | The maximum markdown discount (of the full price) allowed during the season. Default value (for example, 100%) comes from the DEFAULT_SET strategy or the chosen strategy in Scope. |
| Max First Markdown Discount | The maximum discount allowed for the first markdown in the season. The default value (for example, 100%) is specified in the DEFAULT_SET strategy or selected strategy in Scope. |
| Max No. of Markdown Weeks | Sets a limit on the number of weeks available for markdowns for a specific merchandise. Defaults to the total weeks in the season. |
| Max Other Markdown Discount | The maximum discount allowed for subsequent markdowns (except the first) in the season. The default value (for example, 100%) is from the appropriate strategy. |
| Merchandise | Description of the merchandise. |
| Merchandise Level | The merchandise level to which the rule applies (from PRO_PROD_HIER_PROCESSING_LVL, such as Class, Subclass, or Style/Color). |
| Merchandise External Code | The merchandise’s external code, as defined by the retailer. |
| Min First Markdown Discount | The minimum discount that is allowed for the first promotion in the season. The default value (for example, 0%) is based on a parameter specified in the DEFAULT_SET strategy or the selected strategy in the Scope stage. |
| Min Other Markdown Discount | The minimum discount that is allowed for the subsequent markdowns (except the first) in the season. The default value (for example, 0%) is based on a parameter specified in the DEFAULT_SET strategy or the selected strategy in the Scope stage. |
| Min Time Between Markdowns | The minimum time (in periods or weeks) between consecutive markdowns in the season. For example, with a four-month markdown season and a four-week minimum, one markdown is roughly allowed per month. Default value is set in the DEFAULT_SET or selected strategy. |
Example: Min Other Markdown and Max Other Markdown Discount
Suppose you set Min Other Markdown Discount to 25% and Max Other Markdown Discount to 50% for an item with a full price of $100. If the first markdown is 20%, the item’s ticket price drops to $80.
For the second markdown:
The minimum allowable reduction is 25%, so the lowest ticket price allowed is $80 × (1 - 0.25) = $60 (which is 40% off the original price).
The maximum allowable reduction is 50%, so the lowest ticket price allowed is $80 × (1 - 0.50) = $40 (which is 60% off the original price).
Sell-through Target - General Strategy
LJ All Sell-through Targets are enforced as Hard?
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Table 5-9 (Cont.) Promo/Mkdn Run - Rules - Sell-Through Target
| Field | Description |
|---|---|
| Product Start Date | This represents the calculated start date for an item based on the logic used for the model start date. |
| Salvage Value (%) | The salvage value for an item is calculated using this percentage: Salvage value percentage multiplied by the full price of the item. The default value (for example, 0%) is based on a parameter specified in the DEFAULT_SET strategy or the selected strategy in the Scope stage. This is a non-editable field. |
| Sell-through target at end of Clearance Season | The sell-through target that must be achieved by the end of the clearance season (defined as the last markdown eligible period). The default value (for example, 85%) is based on a parameter specified in the DEFAULT_SET strategy or the selected strategy in the Scope stage. |
| Sell-through target at end of Regular Season | The sell-through target that must be achieved by the end of the regular season (defined as the last Promotion eligible period). The default value (for example, 0%) is based on a parameter specified in the DEFAULT_SET strategy or the selected strategy in the Scope stage. |
| Target Sell-through | The sell-through target at the end of the specified period for the merchandise as percentage (0% - 100%). If enforced as Hard, then this sell-through target must be met; otherwise, the optimization will not return any solution. |
| Week Ending Date | The week ending date for the period. This field is not editable. |
| Weeks From Start | This field is non-editable, and it runs from Week 1 to the maximum number of weeks available for the selected merchandise level. Available only with the Relative Calendar option. |
Rules - Price Ladder
In this screen, shown in the following figure, you can assign price ladders that have been loaded and are available for the selection location and merchandise levels from (PRO_PROD_HIER_PROCESSING_LVL (for example, Class). You can load as many price ladders as possible at different merchandise levels (Class and above). By default, the system assigns one price ladder for promotion and one for markdown at the PRO_PROD_HIER_PROCESSING_LVL (for example, Class level) that is closest to PRO_PROD_HIER_PROCESSING_LVL.
The contextual area shows the percentage of rules specified by the merchandise level (for example, the percentage specified at Class level versus Subclass versus Style/Color level).
Department 0003-Womens Activewear REGION 42-US Western Region (WER) Price Zone -1-Retailer Ltd Strategy DEFAULT_SET Eff Week 2017-05-21 x Temporal Planned Events Promotion Markdown Sell-through Target Price Ladder Product Groups Distribution of Price Ladder Strategy Actions ¥ View ¥ 2 @ VY vetach Merchandise Merchandise Level bain Pe Price Ladder Name Price Ladder Type Price Ladder Active Accessories Class 0006 Mkdn Ladder for DEPT0003REGION42 M (Price Point - $) .07, 17, .27, .37, .47, 57, .67, 77, .87, | Active Accessories Class 0006 Promo % Off Ladder for DEPT0003REGION42 P ( % Off from Original Price ) 0%, 5%, 10%, 15%, 20%, Active Apparel Class 0003 Mkdn Ladder for DEPT0003REGION42 M (Price Point - $) .07, 17, .27, .37, .47, 57, .67, 77, .87, | Active Apparel Class 0003 Promo % Off Ladder for DEPTO003REGION42 P ( % Off from Original Price ) 0%, 5%, 10%, 15%, 20%, Fitness Studio Apparel Class 0002 Mkdn Ladder for DEPTO0003REGION42 M (Price Point - $) .07, 17, .27, .37, .47, 57, .67, 77, .87, | Fitness Studio Apparel Class 0002 Promo % Off Ladder for DEPT0003REGION42 P ( % Off from Original Price ) 0%, 5%, 10%, 15%, 20%, Outerwear Fleece Class 0005 Mkdn Ladder for DEPT0003REGION42 M (Price Point - $ ) .07, 17, .27, .37, .47, 57, .67, 77, 87, 4 Outerwear Fleece Class 0005 Promo % Off Ladder for DEPTO003REGION42 P ( % Off from Original Price ) 0%, 5%, 10%, 15%, 20%, Distribution of Price Ladder Strategy mons Tops and Bottoms Class 0009 Mkdn Ladder for DEPTO003REGION42 M (Price Point - $) .07, 17, .27, .37, .47, 57, .67, 77, .87, | Tops and Bottoms Class 0009 Promo % Off Ladder for DEPTO003REGION42 P ( % Off from Original Price ) 0%, 5%, 10%, 15%, 20%,
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Same Promotion Discount. In this group, all the items are not only promoted together in a given week or time period (if promoted), but they also must get the same discount. Note that the recommended prices can be different for each item in this group.
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Same Markdown Discount. In this group, all the items are not only marked down together in a given week or time period (if marked down), but they also must get the same discount. Note that the recommended prices can be different for each item in this group.
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Same Promotion and Markdown Discount. All the items receive the same percentage off recommendations over the life of the item. Note that the recommended price can be different for items within this group. For example, items with a full price of $100 and $150 can receive a recommended price of $80 and $120. (Note that both get same discount of 20% off.)
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Promote Nothing. None of the items in this group receive any promotions.
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Markdown Nothing. None of the items in this group receive any markdowns.
You can click Create New and access the Create Pricing Group screen to create a new Pricing Group for any of the above category. You must enter a group name and the group type from the drop-down list. You can select each product, one at a time, and add it to the group.
Additionally, you can filter the products using Query by Example. Use Select All to add the products to the group, and then click Save . There is limited conflict checking or validation in place, so you must be careful when adding products in two conflicting groups (for example, Promote At most one and Promote All or Nothing).
Alternatively, the group definitions (that is, what items constitute a group) can be loaded using the interfaces: PROD_ATTR.csv and ATTR.csv (formerly, W_RTL_ITEM_GRP1_DS). How these groups must be treated for pricing for a particular product/location or price zone, can be specified using the PRO_OPTIMIZATION_RULES_STG interface or Rules Engine.
When the runs are created, these groups will appear in the corresponding run with the intersecting set of items. You can choose to modify the items in the pricing group or pricing group type.
Notifications Q. Search for a notification = , Filters v @ Pricing=⇐< - Recalculate Complete Complete t Normal Recalculate successful on 1 recommend… | 16/10/2025, 4:17:00 pm pm aif_dev_user ’ @ Pricing - Recalculate Complete Complete Normal Recalculate successful on 1 recommend… 14/10/2025, 2:19:11 pm pm 4 aif_dev_user ; ’ @ Copy Rules Complete Rules Complete Complete Normal ! Copy Rules Complete. Complete. Total copied rules… | 14/10/2025, 11:56:20am j aif_dev_user ’ @ Pricing - Optimization Complete Normal 8198 - Demo run 08/10/2025, 7:39:46pm 7:39:46pmpm ; AIF_DEV_USER ; @ Submit Rules Complete Complete Normal } Submit recent rules completed completed for Dem… 08/10/2025, 7:21:41pm 7:21:41pm 1 aif_dev_user ’
a 3
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You can select an item in the table (Revenue, Promotion, Markdown, and Targeted) to view its image and full price path in the BI/Contextual area on the right. Each price type is represented by a different color:
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Dark Green: No Promotion/Markdown Price
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Orange: Markdown
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Green: Planned Event
Overrides and Promotions, if present, are also shown in the graph. Additionally, you can review the Projected Sales and Inventory Path as well as Projected Budget Usage for the selected item.
30peo” 7May 4 xn 28 4Sun 1 8 2 Su2 9 ® 2 0 6hug 8 20 n 3sep 0 ” ee 0 7 4 2 28 4 0 8 5 2 ° 6 2B 30 6 f 20 zn 3 » ” ‘Apr 2017 May Jun Jul Aug Sep Actions ~~ View ¥ Gh YZ petach [Manage Columns + Item Price, Zone _Region, Ending, Week Date Proj invof EndWk ProjSlsUnitsSIS .projSisRev Tkt Price, ProjPrice Tkt4 ProjPrice Sls: Base SalesUnits; onealfromChangesPrice fromSales PlannedEvents Units cumSale: 0003-Womens Activewear -1-Retailer Ltd 42-US Western Region (WER) 04/30/17 1,328,937 39,575, $971,813.75 $24.56 $24.56 39,575, fo} ° 0003-Womens Activewear -1-Retailer Ltd 42-US Western Region (WER) 05/07/17 1,290,304 39,422 $968,034.84 $24.56 $24.56 39,422 fo} 0 (0003-Womens Activewear -1-Retailer Ltd 42-US Western Region (WER) 05/14/17 4,249,071 45,086 $064,914.62 $22.29 $23.62, 41933 3153 ° 0003-Womens Activewear -1-Retailer Ltd 42-US Western Region (WER) 05/21/17 1,171,860 82,212 ‘$1,331,515.76 $219 $16.2 35,683, 46,529 fo} 0003-Womens Activewear -1-Retailer Ltd 42-US Western Region (WER) 05/28/17 1,138,668 41,906 $909,726.66 $21.76 $21.71 33,062 8,844 oO 0003-Womens Activewear -1-Retailer Ltd 42-US Western Region (WER) 06/04/17 1,073,596 74,502 $1,210,310.86 $2194 $16.25, 32,437 42,065 |
|Actions v|View
Vv
ra||4 Detach
||{-} ManageCol|umns|||||
|---|---|---|---|---|---|---|---|---|
|t Merch|ant
Merchandise
Le
Desription|Week
Ending Date|Forecast
Sales Unit|saan
Amount|Forecast
Return Unit|Forecast
Amount|Forecast
Return%|t
Item
Count|
|Department|0003-Womens
Actvclene|04/30/17|39,575|$971,813.75|0|$0.0|m
0%|2,089|
|Department|0003-Womens
Activewear|05/07/17|39,422|$968,034.84|1,571|$38,542.22|a
4%|2,089|
|Department|$005 Womens
ctivewear|05/14/17|45,086|—$1,064,914.62|4,799|$117,990.77|1%|2,089|
|Department|ae
ctivewear|05/21/17|82,212|$1,331,515.76|5,951|$144,011.73|M%|2,089|
|Department|008 Womens
ctivewear|05/28/17|41,906|$909,726.66|9,700|$208,669.58|23%|2,089|
|Department|p00 womens
Activewear|06/04/17|74,502|$1,210,310.86|10,397|$208,859.42|14%|2,089|
|Department|O00S-Worrens
Activewear|06/11/17|39318|$846,36798|9929|$201,378.76|25%|2,089|
|Department|0003-Womens
Achivewest|06/18/17|68,209|$1,109,653.41|11,368|$209,699.88|a
17%|2,089|
|Department|2005 Womens
ctivewear|06/25/17|32,639|$706,303.12|9172|$182,087.61|28%|2,089|
In this guide
- Guide: Lifecycle Pricing Optimization User Guide
- Previous: 4 LPO Rules and Strategies
- Next: 6 Regular Pricing Optimization - What-If Run
Related chapters
- 13 LifeCycle Pricing Optimization — AI Foundation Implementation Guide · shares
DEFAULT_SET,PRO_OPTIMIZATION_RULES_STG,PRO_PROD_HIER_PROCESSING_LVL,PRO_SEASON_PERIOD_STG