Optimization Model Logic (DEPRECATED)

The Pricing Guidance section represents the initial implementation of Optimization (called PriceOptimizer or Segmentation). Currently, all this functionality is covered by Model Classes. The logics used are documented in Optimization (Reference).

No more new implementations of Pricing Guidance, relying on “Model Type”, should be done; at some point in the future, it will be removed from the product.

The Optimization calculation logic is the core of the optimization model because the whole model behavior is defined in the logic: most of the user inputs, calculations, policy records, etc. For the standard Segmentation-Optimization model it is not necessary to implement the logic from scratch because we provide a customizable reference implementation.

In general, Optimization is intended to broadly meet three main use cases:

Standard segmentation and optimization using a normalizable transaction-level measure such as net margin (profit) or discount. These logics are available via our Customer Solutions.
Same as 1 but with minor customizations such as label changes, custom score calculation, etc. In this case, the reference logics are tweaked in a few elements: Data, SegmentCalculation, etc. There is no predefined recipe, as we want to take a full advantage of the configuration capabilities of our platform, but generally the configuration effort is expected to be less than a week.
Custom implementation, where the customer's requirements clearly do not fit our standard distribution-based segmentation and optimization model. Expect several weeks of configuration effort.

Most implementations will fall in categories 1 and 2. We will elaborate somewhat on makeup of an Optimization logic, as it will also help in category 2 efforts, but category 3 is deemed to be a rather exceptional, very advanced use case requiring engagement of Customer Solutions, including Pricing Science.