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Markdown Optimizer
Apex's Markdown Optimization solution is based around powerful algorithms that have been extensively tested and verified using simulators. Apex's proprietary pattern detection technology extracts stable "sell-through" patterns that model sales as function of inventory and time. Combining powerful price elasticity modeling with accurate forecasting achieved via sell thru patterns brings the power of scientific pricing to markdown management. Strategies based on these technologies will help drive greater revenues, profits and inventory turns. Merchandisers can implement markdowns at Style-color, store-group, store or any other levels consistent with their operational constraints while ensuring optimality. Doing markdown plans at detailed level (sku-store) is virtually impossible
manually.
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Users can review and override price elasticities and promotional lifts
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Users can input parameters such as cost of markdowns, inventory carrying cost etc. These are initialized from a database or an alternative input source at the time of implementing the system
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Optimize any intersection of geo and product hierarchy along any time slice
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Optimization objectives configurable
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Business constraints can be activated from a menu with a pre-existing but configurable default set. Some of the constraints are:
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Minimum gap between successive markdowns
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Min/Max markdown level as well as max lifetime markdown
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Optimization constraints can be selected for activation. Some of them are:
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Maximum leftover inventory target
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