Create constraints

Constraints are specific conditions that the variables in the optimization problem must satisfy.

Learn how to:

• Create a bound constraint
• Create a spread constraint

Create a bound constraint

Bound constraints usually operate within a segment, setting upper or lower limits for markup, discounts from the list price, margin rates, or prices. For example, these constraints ensure that price recommendations neither fall below the cost nor exceed the competitor prices.

To create a bound constraint:

1. From the Price IQ Manager Dashboard, expand the Setup folder.
2. Select the Scenario Config workbook.
3. On the Fields worksheet, locate a row with the column you want to use as a bound constraint and select the Solver Parameter checkbox.
4. On the Constraint Setup worksheet, select Insert Row.
5. Enter information or make selections to create a constraint. To learn how to fill in the fields, read about the Constraint Setup worksheet.
6. Select Save.

Create a spread constraint

Spread constraints typically operate across segments, establishing a minimum or maximum gap between two values of a field. For example, a spread constraint can ensure that price recommendations for large customers are at least 2% lower than those for small customers. Additionally, spread constraints regulate the minimum and maximum gaps between the start and target or between the target and floor price points.

To create a spread constraint:

1. From the Price IQ Manager Dashboard, expand the Setup folder.
2. Select the Scenario Config workbook.
3. On the Constraint Setup worksheet, select Insert Row.
4. Enter information or make selections to create a constraint. To learn how to fill in the fields, read about the Constraint Setup worksheet.
5. Select Save.
6. On the Spread Mapping worksheet, select Insert Row.
7. Enter information or make selections to configure a constraint. To learn how to fill in the fields, read about the Spread Mapping worksheet.
8. Select Save.