RPO: Optimize Margin Produces Results Greater on Revenue than on Margin
Last updated on JULY 19, 2018
Applies to:Oracle Retail Regular Price Optimization - Version 15.0.3 and later
Information in this document applies to any platform.
Optimization on Max Margin yields results (in terms of margin and revenue) worse than optimization on Max Revenue. Expectation is that in the Max Margin scenario the yield should be greater.
Steps to reproduce:
1. Open Price Analysis wb, select scenario group with Full Optimization capacity enabled.
3. Scenario A has a Gross Margin as the goal for optimization, Scenario B has Revenue.
4. Scenario A and Scenario B have the same constraints.
5. In optimization tab select Scenario A.
6. Launch the menu Optimize Prices, and observe results.
7. In the optimization tab select Scenario B and zone 1.
8. Launch the menu Optimize Prices and observe results. Both scenarios are feasible; however, scenario A is worse than scenario B. Instead it should be better, at least on Margin.
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