Prepare Elasticity Model (Optimization - Shelf Price)

Owned by Ondřej Tesař
Mar 08, 2024
2 min read

To retrieve the elasticities calculated from transaction data, the Shelf Price Grid model deployed by the Accelerator depends on another Multifactor Elasticity model. Below is the simplest way to configure such a model on the partition; the complete documentation for multifactor elasticity models is in Accelerate Multifactor Elasticity Optimization.

In this section:

Deploy

Note that if the Multifactor Elasticity Model Class & Logics have already been deployed on the partition, deploying them again might override specific changes done by a pricing scientist. Also if the Multifactor Elasticity Model Class is already present in Administration > Configuration > Optimization > Model Classes, you can directly use it without doing the deployment again.

As the Optimization - Shelf Price Accelerator has a dependency on the Optimization - Multifactor Elasticity Accelerator, the quickest way to deploy both is to directly deploy the first one. It will take care of deploying the other. See for more details.

It is still possible to deploy only Optimization - Multifactor Elasticity; see the admin part of the Multifactor Elasticity documentation.

Prepare Transaction Source

The Multifactor Elasticity model runs using a transaction source. The transaction source must meet the following prerequisites.

  • The transaction source must contain the following fields (create them if needed):

    • Date – Date of the transactions, might be used for aggregation by period.

    • Product – ID of each product.

    • Shelf Price – Price applied to the customer (extended to the quantity).

    • Quantity – Number of products in each transaction.

    • Store – Store where the transaction was done. Note: if only one store or differentiation by store, using always the same value will work.

    • Channel – Channel where the transaction was done. Note: if only one store or differentiation by store, using always the same value will work.

    • All the fields that define the factors that influence the price elasticity of the products.

It is recommended that this transaction source is the one used in the Shelf Price Grid model to define the historical sales.

Create and Run Model

The documentation to create and run a Multifactor Elasticity model is in .