U.S. patent number 6,397,199 [Application Number 09/144,294] was granted by the patent office on 2002-05-28 for system and method of altering transaction terms based upon current inventory levels.
This patent grant is currently assigned to NCR Corporation. Invention is credited to John C. Goodwin, III.
United States Patent |
6,397,199 |
Goodwin, III |
May 28, 2002 |
System and method of altering transaction terms based upon current
inventory levels
Abstract
A system and method of altering transaction terms which examines
inventory levels and changes transaction terms, such as price and
rental period. The system includes a plurality of electronic price
labels associated with a plurality of rental items for displaying
rental terms of the rental items including price information and
rental period information, a storage medium containing a plurality
of threshold inventory ranges and a plurality of prices associated
with the inventory ranges and a plurality of rental periods
associated with the inventory ranges, and a computer which
determines first inventory levels for the rental items and first
inventory ranges from the current inventory levels at first rental
terms including first prices and first rental periods and which
determines second inventory levels and second threshold inventory
ranges from the second inventory levels for the rental items and
whether to replace the first prices with second prices and the
first rental periods with second rental periods if the second
inventory ranges differ from the first inventory ranges, and which
sends a message to the electronic price labels to display second
rental terms including the second prices and the second rental
periods.
Inventors: |
Goodwin, III; John C. (Suwanee,
GA) |
Assignee: |
NCR Corporation (Dayton,
OH)
|
Family
ID: |
22507952 |
Appl.
No.: |
09/144,294 |
Filed: |
August 31, 1998 |
Current U.S.
Class: |
705/400; 235/383;
705/22 |
Current CPC
Class: |
G06Q
20/203 (20130101); G06Q 30/0283 (20130101); G06Q
30/06 (20130101) |
Current International
Class: |
G06Q
30/00 (20060101); G06F 017/60 () |
Field of
Search: |
;705/400,20,21,22,28,26
;235/383 |
References Cited
[Referenced By]
U.S. Patent Documents
Foreign Patent Documents
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0 712 086 |
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May 1996 |
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EP |
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0749082 |
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Dec 1996 |
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EP |
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0 764 913 |
|
Mar 1997 |
|
EP |
|
9009638 |
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Aug 1990 |
|
WO |
|
9632683 |
|
Oct 1996 |
|
WO |
|
WO 9632683 |
|
Oct 1996 |
|
WO |
|
Other References
no author; "NCR Wireless Price Management Solution Automates Shelf
Pricing at K-VA-T Food City"; Aug. 1998; PR Newswire, p820CLTH002;
DialogWeb copy pp. 1-3..
|
Primary Examiner: Trammell; James P.
Assistant Examiner: Dixon; Thomas A.
Attorney, Agent or Firm: Martin; Paul W.
Claims
I claim:
1. A method of determining a transaction term for an item
comprising the steps of:
establishing a plurality of different transaction terms for the
item at a plurality of different threshold inventory levels;
determining a first inventory level, a first threshold inventory
level associated with the first inventory level, and a first
transaction term for the item from the first threshold inventory
level;
determining a second inventory level and second threshold inventory
level for the item;
comparing the first and second threshold inventory levels;
if the first and second threshold inventory levels are different,
determining a second transaction term for the item from the second
threshold inventory level and replacing the first transaction term
with the second transaction term; and
displaying the second term by an electronic price label associated
with the item.
2. A method of determining a transaction term for a rental item
comprising the steps of:
establishing a plurality of different transaction terms including a
plurality of different prices and a plurality of different rental
periods for the rental item at a plurality of different threshold
inventory ranges;
determining a first inventory level, a first threshold inventory
range containing the first inventory level, and a first price and
first rental period for the rental item from the first threshold
inventory range;
determining a second inventory level and second threshold inventory
range containing the second inventory level for the rental
item;
comparing the first and second threshold inventory ranges;
if the first threshold inventory range is higher than the second
threshold inventory range, determining alternative second
transaction terms for the rental item including a second price
higher than the first price and a second rental period shorter than
the first rental period; or
if the first threshold inventory range is less than the second
threshold inventory range, determining alternative second
transaction terms for the rental item including a second price
lower than the first price and a second rental period longer than
the first rental period; and
displaying one of the alternative second transaction terms by an
electronic price label associated with the rental item.
3. A method of determining a rental period for a rental item
comprising the steps of:
establishing a plurality of different rental periods for the rental
item at a plurality of different threshold inventory ranges;
determining a first inventory level, a first threshold inventory
range containing the first inventory level, and a first rental
period for the rental item from the first threshold inventory
range;
determining a second inventory level and second threshold inventory
range containing the second inventory level for the rental
item;
comparing the first and second threshold inventory ranges;
determining a second rental period, which is longer than the first
rental period for the rental item if the first threshold inventory
range is higher than the second threshold inventory range, and
which is shorter than the first rental period if the first
threshold inventory range is less than the second threshold
inventory range; and
displaying the second rental period by an electronic rental period
label associated with the rental item.
4. An electronic price label system comprising:
a plurality of electronic price labels associated with a plurality
of rental items for displaying rental terms of the rental items
including price information and rental period information;
a storage medium containing a plurality of threshold inventory
ranges, a plurality of prices associated with the inventory ranges,
and a plurality of rental periods associated with the inventory
ranges; and
a computer which determines first inventory levels for the rental
items and first inventory ranges from the current inventory levels
at first rental terms including first prices and first rental
periods, and which determines second inventory levels and second
threshold inventory ranges from the second inventory levels for the
rental items, and whether to replace the first prices with second
prices and the first rental periods with second rental periods if
the second inventory ranges differ from the first inventory ranges,
and which sends a message to the electronic price labels to display
second rental terms including the second prices and the second
rental periods.
Description
BACKGROUND OF THE INVENTION
The present invention relates to transaction processing systems,
and more specifically to a system and method of altering
transaction terms based upon current inventory levels.
Point-of-sale (POS) transaction processing systems typically
include a price look-up (PLU) file which contains item
identification information and item price information. They also
typically include an inventory file which is updated with each
rental or purchase.
In some retail establishments, there is a need to sell or rent
under different pricing strategies based upon inventory levels. For
example, a video rental establishment may have various rental terms
for various categories of video rentals. New movies may be single
day rentals at one price. Older releases may be week long rentals
at a second price. Children's videos may be rented for yet a
different period of time at a different price.
However, as inventory levels change, there is a need to change the
price or rental period. If the inventory level of one category of
video is low, then the retailer may wish to shorten the rental
period or increase the rental price. If the inventory level is
high, the retailer may wish to lengthen the rental period or
decrease the rental price.
Constantly implementing changes in rental terms throughout the
video rental establishment would be difficult, since signs would
have to be posted and changed for each change in rental terms.
Therefore, it would be desirable to provide a system and method of
altering transaction terms which can display current transaction
rental terms in real time.
SUMMARY OF THE INVENTION
In accordance with the teachings of the present invention, a system
and method of altering transaction terms based upon current
inventory levels is provided.
The system includes a plurality of electronic price labels
associated with a plurality of rental items for displaying rental
terms of the rental items including price information and rental
period information, a storage medium containing a plurality of
threshold inventory ranges and a plurality of prices associated
with the inventory ranges and a plurality of rental periods
associated with the inventory ranges, and a computer which
determines first inventory levels for the rental items and first
inventory ranges from the current inventory levels at first rental
terms including first prices and first rental periods and which
determines second inventory levels and second threshold inventory
ranges from the second inventory levels for the rental items and
which whether to replace the first prices with second prices and
the first rental periods with second rental periods if the second
inventory ranges differ from the first inventory ranges, and which
sends a message to the electronic price labels to display second
rental terms including the second prices and the second rental
periods.
The method includes the steps of establishing a plurality of
different transaction terms for the item at a plurality of
different threshold inventory levels, determining a first inventory
level and a first threshold inventory level associated with the
first inventory level and a first transaction term for the item
from the first threshold inventory level, determining a second
inventory level and second threshold inventory level for the item,
and comparing the first and second threshold inventory levels. If
the e first and second threshold inventory levels are different,
the method further includes the steps of determining a second
transaction term for the item from the second threshold inventory
level and replacing the first transaction term with the second
transaction term, and displaying the second term by an electronic
price label associated with the item.
It is accordingly an object of the present invention to provide a
system and method of altering transaction terms based upon current
inventory levels.
It i s another object of the present invention to provide a system
and method of altering transaction terms based upon current
inventory levels w which does not require additional labor
costs.
It is another object of the present invention to provide a system
and method of altering transaction terms based upon current
inventory levels which employs an EPL system to display the new
transaction terms.
BRIEF DESCRIPTION OF THE DRAWINGS
Additional benefits and advantages of the present invention will
become apparent to those skilled in the art to which this invention
relates from the subsequent description of the preferred
embodiments and the appended claims, taken in conjunction with the
accompanying drawings, in which:
FIG. 1 is a block diagram of a transaction processing system;
FIG. 2 is a diagram showing data files used within a transaction
establishment; and
FIG. 3 is a flow diagram illustrating the method of the present
invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Referring now to FIG. 1, transaction system 10 primarily includes
host computer system 12, point-of-sale (POS) system 14, and
electronic price label (EPL) system 16. Here, components 12, 14,
and 16 are shown as separate components that are networked
together, but they may also form a single component in small
transaction establishments, such as video rental
establishments.
POS system 14 includes bar code reader 18 and terminal 20.
EPL system 16 primarily includes EPLs 22, host EPL terminal 24, and
EPL storage medium 26.
EPLs 22 include a data register 54 and a display 56. Data registers
54 contain data, usually price and product data, sent from EPL
software 30. In the case of a video rental establishment, product
data includes inventory data, such as current return date. The data
is typically displayed by displays 56.
Host EPL terminal 24 executes EPL software. To assist with
execution of certain tasks performed by EPL software 30, EPL
terminal 24 includes a built-in time keeping device, commonly
referred to as a system clock, which is synchronized with current
time, in order to automatically execute the tasks at their
scheduled times.
EPL software 30 is responsible for scheduling and transmitting
price data to EPLs 22. EPL software 30 obtains prices in price
look-up (PLU) data file 44 as they are entered in input device 42
(immediate processing) or after they have been stored within PLU
data file 44. EPL software 30 also schedules and transmits product
information, including inventory information and promotional
information, to EPLs 22 for display.
EPL storage medium 26 stores EPL data file 32 and is preferably a
fixed disk drive. EPL data file 32 contains item identification,
EPL identification, and price checksum information. Price checksum
information is calculated from price information in PLU data file
44.
Host computer system 12 includes Storage medium 36, host PLU
terminal 40, and input device 42.
Host PLU terminal 40 executes PLU maintenance software 50 and
transaction management software 52.
PLU maintenance software 50 updates PLU data file 44 upon operator
input.
Transaction management software 52 monitors current inventory
levels and prices in PLU data file 44 and automatically alters
current transaction terms based upon a predefined schedule in
transaction management data file 48.
In the video rental establishment example, transaction management
software 52 automatically monitors video inventory levels and
establishes a new return date or price for each category of video
from transaction management data file 48. Transaction management
software 52 updates prices and return dates in PLU data file 44 and
causes EPL software 30 to display a new price and return date.
Input device 42 is preferably a keyboard.
Storage medium 36 stores PLU data file 44, current inventory data
file 46, and transaction management data file 48.
PLU data file 44 includes item identification information and item
price information. In a video transaction establishment, PLU data
file 44 may additionally contain a current return date. PLU data
file 44 is available for distribution to POS terminal 20.
Alternatively, provision may be made for direct access to PLU data
file 44 by bar code reader 18.
Current inventory data file 46 contains a count of each item in the
transaction establishment.
Transaction management data file 48 contains a table of inventory
levels, prices, and transaction terms for each category of goods.
In the video rental establishment example, transaction management
data file 48 includes return date information for each video
category.
The number of inventory levels in the table is determined by the
type of business. For example, in one business many levels may be
employed, while in another business only two levels separated by a
single threshold level may be employed. The latter scheme may be
optimal for managing different categories of video rentals.
Turning now to FIG. 2, EPL data file 32, PLU data file 44, current
inventory data file 46, and transaction management data file 48 are
shown in more detail.
EPL data file 32 includes a line entry for each EPL 22 in EPL
system 16. Each line entry has an item identification entry (ITEM
ID), an EPL identification entry (EPL ID), and an EPL price
checksum value entry (EPL CHECK).
Entry ITEM ID identifies a store item. Entry EPL ID identifies
which EPL is assigned to the item. Entry EPL CHECK is a checksum
value of the digits of the price information that is displayed by
display 56.
PLU data file 44 includes a line entry for each item sold in the
store. Each line entry has an item identification entry (ITEM ID)
and a PLU price entry (PLU PRICE). Each item may additionally
include a data field for another term or terms of the transaction.
For example, rental return date would be an additional transaction
term that could be stored in PLU data file 44 and managed with
price data.
Entry ITEM ID identifies a store item. Entry PLU PRICE identifies
the price read by POS system 14 to determine the price of each item
during scanning by bar code reader 18. Entry OTHER TERM identifies
an additional transaction term.
Current inventory data file 46 includes a line entry for each item
(ITEM ID), its current inventory level (LEVEL), and the category it
belongs to (CAT).
Transaction management data file 48 includes threshold inventory
levels for each category of items (CAT). Each category of items
includes a line entry for threshold inventory levels (LEVEL),
prices within each range of threshold inventory levels (PRICE), and
other transaction terms (OTHER TERM) for each range of threshold
inventory levels. An example of another transaction term would be
the return date for a video rental.
During normal operation, transaction management software 52
automatically monitors current inventory data file 46 and compares
category levels to threshold levels in transaction management data
file 48. As different threshold levels are reached, transaction
management software 52 changes price and other term information in
PLU data file 44 and causes EPL software 30 to display a new price
and/or term.
Turning now to FIG. 3, the operation of daily price change
management software 28 is discussed in more detail beginning with
START 60.
In step 62, transaction management software 52 reads transaction
management data file 48 to choose a category of items to examine.
Individual items may also be examined instead of categories.
In step 64, transaction management software 52 identifies each item
within the category and its current inventory level. Current
inventory data file 46 is automatically updated by POS terminal 20
during each transaction.
In step 66, transaction management software 52 sums the levels of
items within the category to obtain a current level for the
category.
In step 68, transaction management software 52 compares the
category level to threshold levels in transaction management data
file 48.
If current price and other terms are at a current category level
which is within the corresponding range of category levels in
transaction management data file 48, then operation proceeds to
step 62.
If current price and other terms are at a current category level
which is outside of the corresponding range of category levels in
transaction management data file 48, then operation continues in
step 70 in which transaction management software 52 changes the
price and/or other terms in PLU data file 44 and causes EPL
software 30 to display a new price and new term that correspond to
the level range in transaction management data file 48.
In step 72, operation returns to step 62 to examine another
category of goods.
Advantageously, use of EPLs 22 allows the transaction establishment
to quickly display the new price and terms. As inventory levels
change, the price and other terms may be quickly changed without
the time and cost to change such information manually throughout
the transaction establishment. For the video rental example, if the
inventory level of one category of video is low, then the retailer
may quickly shorten the rental period and/or increase the rental
price for each video in the category. If the inventory level is
high, the retailer may quickly lengthen the rental period and/or
decrease the rental price.
Transaction management software 52 may be executed continuously,
after hours, or on demand, depending on the type of business.
Operation loops back from steps 68 and 70 to step 62.
Although the present invention has been described with particular
reference to certain preferred embodiments thereof, variations and
modifications of the present invention can be effected within the
spirit and scope of the following claims.
* * * * *