Usage

The Price Waterfall Optimization Accelerator allows you to create and customize optimization models to maximize revenue and profit by defining boundaries, objectives, and advanced parameters. The process involves steps such as defining the model, setting scope, configuring boundaries and objectives, and analyzing results to optimize pricing strategies efficiently.

Configuration

You can define revenue and volume objectives in the Price Waterfall Optimization Accelerator by using the Objectives tab in the Configuration step. Set revenue targets for specific customer groups and volume targets for product groups, along with defining different priorities for each objective.

The Boundaries Tab in the Configuration step of the accelerator helps in setting constraints for the optimization model by defining how much the model can change each row value. It includes specific adjustments, discounts, and price boundaries, allowing you to set limits on the changes that can be applied to different variables within the model.

The Results step of the Price Waterfall Optimization Accelerator includes the following tabs:

• Impact tab → Displays comparisons between the current state (before optimization) and the optimized one.

• Details tab → Displays tables that compare the current to the optimized values at different levels of granularity.

• Glassbox tab → Displays charts that provide the state of the values finders and the criteria at the end of the optimization. It is useful to understand how the model reached its optimized state.

• Influencers tab → Displays the relationships between a selected value finder and the interacting criteria.

• Evaluation tab → Displays the relevant optimized values for user inputs.