Pages

Dec 17, 2012

BlackLotus and Product Assortment

It is reported in TechCrunch today that Home Depot acquired startup BlackLotus. BlackLotus applies data mining to two major problems facing retail stores: Pricing and Product Assortment. The Pricing solution got a lot of mention in this article. I want dive deeper on the second solution provided by BlackLotus: Product assortment.

Since the early days of data mining (which started in 1993, with the publication of Rakesh Agarsal's seminal paper on frequent pattern mining), researchers has been paying attention to product selection problem. The famous "diaper and beer" story illustrates how frequent pattern mining discovers young fathers who shop for diaper also shop for beer on Friday nights. The purchase pattern of users on an assortment of products give retailers hint on what to display together. It also gives retailers a tool to decide what to replenish when products are sold out.

Each retailer faces the problem of limited shelf space. Take Home Depot as an example. If they decide to replenish oriental rug, but find that this kind of rug is bought together with long dinning table. Then they should consider increasing the stock of those long dinning tables. Given the limited shelf space, they may have to decrease the stock of contemporary rugs if that rug does not sell well. Thus the decision has to be made between two product assortments: {oriental rug, long dinning table} and {contemporary rug}. This decision considers the frequency of purchase of each assortment, and the profit each sale brings.

The data mining approach to Frequent Pattern Mining gives us a fast and efficient way to calculate frequency of any product. The transaction table is recorded as in Table 1, where each transaction correspond to each row, and the columns are the products. One person can have multiple rows if that person comes back to shop again. In this table, we assume that are total 9 million purchases (in a month) in Home Depot.
Transaction ID
Oriental Rug
Contemporary
Rug
Dinning table
  1
1
0
  ...
1
  2
0
1
  ...
0
  3
1
0
  ...
0
  ...
 ...
  ...
  ...

  9,000,000
1
0
  ...
1
                             
                                    Table 1. Transaction table

The data mining field has invented 2 major algorithms to calculate the purchase frequency of any product set, or itemset (a set of product items): Apriori and FP-tree (Frequent-pattern tree). The first is a breadth first search method, and the second is essentially a depth-first search.

We will talk about the details of these algorithms in the future if time allows. 

73 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Such a very useful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article.
    Agen Togel

    ReplyDelete
  3. good Tv set serials as well a portion of this app. Cloud TV app and not really of them will be always “legal.” No subject what nice.

    ReplyDelete
  4. Barbecue beef brisket is the national dish of the Republic of Texas. Here's the recipe for how to cook it the way the BBQ champions abd BBQ restaurants cook it. Learn how to grill Brisket steak in best weather now!

    ReplyDelete
  5. good Kodi build up with all the amazing add-ons and delicacies official website link pics from your Laptop or computer in one place. Kodi Download Free nice.

    ReplyDelete
  6. Very informative post i like it very much

    ReplyDelete
  7. Oh! What a brilliant job you’ve accomplished here. All the facts on this topic are available in this post. I have not read any article up till now that tells every little fact about a certain topic. You must be very proud of yourself. Keep this up and you shall become the best writer ever!bathroom sink Plantation

    ReplyDelete
  8. good organized to kick off another type of it and official website link all the video lessons in HD top quality, which CinemaBox Download Free great.

    ReplyDelete
  9. This article gives the light in which we can observe the reality. This is very nice one and gives in depth information. Thanks for this nice article.custom t shirts vancouver

    ReplyDelete
  10. in order to get high grades in GRE practice tests are very essential and due to this the students appearing for GRE chooses GRE practice tests

    http://gregurublog.com/top-10-gre-facts-myths/

    ReplyDelete
  11. Nice to read this interesting post..I LOVEEE FRUGAL Vintage Rug

    ReplyDelete
  12. The only exception is that we unfortunately have had to hold on to some related source code that uses proprietary code from 3-partys. However none of thus are essential, and binaries are made freely available for most of it. A list of non-released code is available at.Honeymoon to Brazil

    ReplyDelete
  13. It has only been a few days since the launch of Apple's brand new iPhone 7 and iPhone 7 Plus, but it appears that the new iPhone has already been jailbroken. To get iPhone 7 Jailbreak go to CydiaNerd.

    ReplyDelete
  14. Remember that this series whilst garish inscription fiat was at respect are normally anchor gone, promptly it motions in interest any smirk than acknowledges.Boca Raton personal injury attorney

    ReplyDelete
  15. Kite Projects provides the best and cheap Bespoke Stainless Steel Handrails and Stainless Steel Ladders Provider in Uk. Call us now 01962 886290 to get information

    ReplyDelete
  16. This blog site has really a huge collection of articles with impressive information.limo from jfk to ct

    ReplyDelete
  17. Congrats employing a process well reached. This order of situation is frequent synchronous ohydrates worthy vulgars recreation so that you can pity. Whereas i already-in-a-day sum you nice really on this usher.tx web development

    ReplyDelete
  18. I want to collect DATA mining . I have a big store please tell me how can i collect ?

    ReplyDelete
  19. good It includes a faucet that was dedicated and it is possible to Best Aquasana Water Filter Shower Determined by amounts and the kinds of substances in the water nice.

    ReplyDelete
  20. Book Travel And Tour Packages At Lowest Cost With Imperial Voyages Travel Agency In India. Tour Operators In India

    ReplyDelete
  21. Regular practise and careful playing is required to be able to convey and evolve the different themes, rewarding you with that intimate instrument connection that we musicians lust for.xem phim tuoi thanh xuan

    ReplyDelete
  22. The colors are so vibrant, it looks fabulous! I bet the leftovers would be great for lunch the next day - not that there would be any leftovers!Customize tee shirts

    ReplyDelete
  23. good security alternative and also touch it to open it. Currently scroll down vshare android windows PC or Laptop computer. This software is going to aid you nice.

    ReplyDelete
  24. First of all Good day! I would just like to give thanks to the admin who posted this one I really appreciate it thank you.flat icon

    ReplyDelete
  25. I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you. I like play game five nights at freddy’s 4, game word cookies game , game hill climb racing 2 , hotmail login, and u? I hope people visit my website.

    ReplyDelete
  26. Great that operate on iphone as well as Macintosh Mac OS X. FACETIME DOWNLOAD APP: ANDROID APK, IPHONE, & PC WINDOWS are asking inquiries like How to Make use of Facetime Fine.

    ReplyDelete
  27. Making share of anthology processing machine software efficiently is surely an essential jam dexterity to see. For this rendezvous an particular happiness breeding capture a sarcastic alms.wireless internet

    ReplyDelete
  28. Great since the time that you read this post. This platform snapchatonlinelogine ability to be able to access the Android application Fine.

    ReplyDelete
  29. It is a satisfaction to see your post. This can be well-articulated, sharpened, and also aim. Precisely what important lessons have you found out that an individual applied to this post. Looking forward to go through your experience. Where have you came your own bottom line?bank exchange rates today

    ReplyDelete
  30. good them absolutely free. In this message we are bringing tutuapp as well as download this TuTu application apk documents best.

    ReplyDelete
  31. Simply getting outside, walking around, taking a train and documenting the experience can be simplest introduction to globetrotting discoveries!.refinance home mortgage calculator

    ReplyDelete
  32. If you like playing golfing and wish to explore greatest golf courses all over the world, trust, golf travel cover will add more enjoyable and exhilaration. Regular insurance doesn't cover reduction, theft or harm to your golfing equipments as well as accidents or even injury occurred throughout the game.cheap t shirts canada

    ReplyDelete
  33. This posting is marvelous and what a fantastic research that you have done. It has helped me a lot. thank you very much.home cleaning

    ReplyDelete
  34. Thanks for a wonderful share. Your article has importaciones your hard work and experience you have got in This field. Brilliant reading .I love it.http://thesquid.ink/

    ReplyDelete
  35. Regular practise and careful playing is required to be able to convey and evolve the different themes, rewarding you with that intimate instrument connection that we musicians lust for.ant control

    ReplyDelete
  36. Later you compare involving mingle jobs, you could potentially rapport these aged thesis writers.Virgin Islands Tours

    ReplyDelete
  37. Making share of anthology processing machine software efficiently is surely an essential jam dexterity to see. For this rendezvous an particular happiness breeding capture a sarcastic alms.airport transfers to hotel os residences

    ReplyDelete
  38. We made these yummy lollipops at my daughter's recent Tie-Dye Birthday party. They were a fun little treat for the girls, but they were so easy, they'd be a fun little treat to make anytime.

    ReplyDelete
  39. Nice blog thanks for sharing this post every body can share this post:>

    ReplyDelete
  40. I’m extremely impressed with your writing skills as well as with the layout on your weblog. Is this a paid theme or did you modify it yourself? Anyway keep up the excellent quality writing, it is rare to see a great blog like this one nowadays.Chris O'Connell “Moon Scene”

    ReplyDelete
  41. It is a satisfaction to see your post. This can be well-articulated, sharpened, and also aim. Precisely what important lessons have you found out that an individual applied to this post. Looking forward to go through your experience. Where have you came your own bottom line?minene

    ReplyDelete
  42. This posting is marvelous and what a fantastic research that you have done. It has helped me a lot. thank you very much.ecommerce expert witness

    ReplyDelete
  43. I am definitely enjoying your website. You definitely have some great insight and great stories.

    ReplyDelete
  44. Love this post! Cooking eggs always seems easy but it’s not as easy as it sounds. Maybe you could share your tips on perfect scrambled eggs.room scheduling software

    ReplyDelete
  45. ats enjoy getting into any and all small spaces. A breakaway collar is a good option since it will break if pulled too tight.custom t shirts

    ReplyDelete
  46. what a fantastic research that you have done. It has helped me a lot. thank you very much.Back covers

    ReplyDelete
  47. I was really impressed with the diet that you follow to keep yourself healthy and fit. I too have similar working hours but the office closes by 6 and have to be there till that time. I feel so tired after the hectic work and then again the cycle continues.tucson pest control

    ReplyDelete
  48. ats enjoy getting into any and all small spaces. A breakaway collar is a good option since it will break if pulled too tight.Airport Car Service Atlanta

    ReplyDelete
  49. It is very good information that we will get details : Bigg Boss 11 on one single click

    Seems to nice to watch the show :Watch Bigg Boss 11 on our finger touch

    We will get details of contestant of the Big Boss show :Bigg Boss 11 Contestants on single shot

    Nice to hear the details such as Voot Bigg Boss 11 of the show.

    The complete details of audition of this show :Bigg Boss 11 Audition will give complete information

    ReplyDelete
  50. Please go thru the link :SSLC Result 2018 for complete SSLC results 2018

    For your results of Kerala SSLC results 2018, please follow :Kerala SSLC Result 2018 get details on one click

    You will get the details of Karnata SSLC results on :Karnataka SSLC Result 2018 Will get nice information

    For the infotrmation regarding the Tamil Nadu SSLC results :Tamilnadu SSLC Result 2018 This will be helpful

    ReplyDelete
  51. Please go thru the link :PUC Result for complete Karnataka PUC Results

    For your results of second PUC results, please follow : 2nd PUC Result get details on one click

    For the infotrmation regarding the second PUC results 2018 :2nd PUC Result 2018 This will be helpful

    ReplyDelete
  52. Please go thru the link PUC Result 2018 for complete Karnataka PUC Results

    For the information regarding the second PUC results 2018 :2nd PUC Result This will be helpful

    For your results of second PUC results, please follow : PUC Result 2018 get details on one click

    ReplyDelete
  53. A woman wakes up in the middle of the night in a state of crisis. Her life flashes before her eyes as she struggles to get to the bottom of her anxiety.custom t-shirts

    ReplyDelete
  54. This is very easy to get the details of Karnataka SSLC Results : Karnataka SSLC Result on this link

    For the information regarding the results of Karnakaka SSLC 2018 : Karnataka SSLC Results 2018 This will be helpful

    Please find complete details of results of Karnakaka SSLC : SSLC Result 2018 thru this link

    We will get complete informations of Karnataka SSLC Results :karresults.nic.in by clicking this link

    ReplyDelete
  55. There tend to be many excellent online sources to offer you information how to correctly prepare as well as store food for the camping journey.toronto real estate

    ReplyDelete
  56. We will get all dtails of TN SSLC result:tnresults.nic.in by just a click

    This is nice information of TN SSLC result:Tamilnadu SSLC Result for a click on this link

    This gives details of SSLC result : SSLC Result 2018 on a click

    Complete TN SSLC result : Tamilnadu SSLC Results 2018 on your finger tip

    ReplyDelete
  57. So glad to know that the new comedy Scrambled Eggs will approach NEW York premiere at Times Square’s Beckett Theatre. A funny and witty author named Robin Amos Kahn and Gary Richards write the play. The media accepted it as a funny play in which describes the journey though her life.executive coaching

    ReplyDelete
  58. Complete Kerala HSC results : keralaresults.nic.in on your finger tip

    This gives details of HSC results : Kerala HSC Result on a click

    This is nice information of Kerala HSC results 2018:HSC Result 2018 for a click on this link

    We will get all details of Kerala HSC results :Kerala HSC Results 2018 by just a click

    ReplyDelete
  59. Nice to see all TNHSC results tnresults.nic.in in one click

    This is super information regarding TNHSC results Tamilnadu HSC Result on simple link

    It is very much interesting to get HSC results 2018 of TN HSC Result 2018 on your fingertip

    We are very much eager to get this info on Tamilnadu HSC Results 2018 of TN HSC results throught this link

    ReplyDelete