Tiered markdowns

Overview

Previously, the system considered a single markdown value when evaluating fulfillment options. Now, you can define multiple markdown levels across different time periods, allowing the system to model how prices are expected to decrease over time.

During order promising and routing, the optimizer evaluates these time-based markdown tiers to better estimate the future value of inventory. This tiers allow it to compare the following more accurately:

• Fulfilling an order immediately at the current price.
• Deferring fulfillment, where the item might be sold later at progressively lower prices.

Key benefits

Key benefits of tiered markdown support:

• More accurate representation of real-world pricing strategies: Model complex markdown schedules that reflect actual business practices.
• Improved revenue optimization: Factor in staged price reductions to make better fulfillment decisions.
• Better inventory usage: Align fulfillment decisions with future pricing trends to maximize profitability.

Summary

This feature builds on existing markdown capabilities, providing a more granular and dynamic approach to fulfillment decision-making. By incorporating multiple markdown tiers, the system can:

• Evaluate the impact of each markdown stage on potential revenue.
• Make more informed decisions about when and where to fulfill orders.
• Optimize inventory allocation across the entire product lifecycle.

For more information about how markdown cost calculation works, see Markdown cost calculation overview.