US 2018/0005319 A1 · Risk-Aware Dynamic Pricing of Long-Term Contracts

Abstract

Systems, methods, and computer-readable media are disclosed for optimizing terms of a long-term contract between a buyer and a seller for a product. Various types of forecasting models may be generated and used to determine the optimized terms such as an optimized price for the long-term contract. A risk model may be generated and evaluated to identify market disruptions that indicate that the optimized price should be re-negotiated to distribute the associated risk between the buyer and seller. An example of such a market disruption may be a market price fluctuation that causes a difference between a spot market price for the product and a contract price to meet or exceed a threshold value.

Claims20

Dependent claims

A computer-implemented method for determining optimized terms of a long-term contract for a product, the method comprising:

receiving, from a buyer, a quote request for the long-term contract to purchase the product from a seller;
determining a buyer segment to which the buyer belongs;
determining a spot market price forecast model that forecasts a spot market price of the product on a spot market;
determining a demand forecast model;
determining a contract optimization model based at least in part on the spot market price forecast model and the demand forecast model;
determining the optimized terms of the long-term contract using the contract optimization model, wherein the optimized terms include at least an optimized price, a minimum buyer quantity commitment, and one or more risk-aware contract terms;
and
sending an indication of the optimized terms to the buyer.

5 more elements

A system for determining optimized terms of a long-term contract for a product, the system comprising:

at least one memory storing computer-executable instructions;
and
at least one processor configured to access the at least one memory and execute the computer-executable instructions to:
receive, from a buyer, a quote request for the long-term contract to purchase the product from a seller;
determine a buyer segment to which the buyer belongs;
determine a spot market price forecast model that forecasts a spot market price of the product on a spot market;
determine a demand forecast model;
determine a contract optimization model based at least in part on the spot market price forecast model and the demand forecast model;
determine the optimized terms of the long-term contract using the contract optimization model, wherein the optimized terms include at least an optimized price, a minimum buyer quantity commitment, and one or more risk-aware contract terms;
and
send an indication of the optimized terms to the buyer.

8 more elements

A computer program product for determining optimized terms of a long-term contract for a product, the computer program product comprising a non-transitory storage medium readable by a processing circuit, the storage medium storing instructions executable by the processing circuit to cause a method to be performed, the method comprising:

receiving, from a buyer, a quote request for the long-term contract to purchase the product from a seller;
determining a buyer segment to which the buyer belongs;
determining a spot market price forecast model that forecasts a spot market price of the product on a spot market;
determining a demand forecast model;
determining a contract optimization model based at least in part on the spot market price forecast model and the demand forecast model;
determining the optimized terms of the long-term contract using the contract optimization model, wherein the optimized terms include at least an optimized price, a minimum buyer quantity commitment, and one or more risk-aware contract terms;
and
sending an indication of the optimized terms to the buyer.

5 more elements

Dependencies are inferred from the claim text.

Risk-Aware Dynamic Pricing of Long-Term Contracts

Life of this patent

Risk-Aware Dynamic Pricing of Long-Term Contracts

Life of this patent

Abstract

Claims20