SYSTEMS AND METHODS FOR PRICE MARKDOWN OPTIMIZATION

In general, the embodiments described herein provide systems and methods for evaluating and selecting a pricing markdown solution. Specifically, these systems and methods evaluate a relatively small subset of potential markdown solutions using an objective function to determine a financial impact metric for those markdown solutions. From that relatively small subset, the systems and methods then utilize Gaussian Process Modeling to generate an estimation function of the financial impact metrics. This estimation function can then be used with a directed search to select new potential markdown solutions for evaluation, and results of those evaluations used to update the estimation function. This process is continued iteratively until an optimized markdown solution for the financial impact metric is identified.