U.S. patent application number 10/842951 was filed with the patent office on 2005-02-17 for pooled transaction system.
Invention is credited to Monsanto, Raphael A., Pickard, Stuart G..
Application Number | 20050038713 10/842951 |
Document ID | / |
Family ID | 22554873 |
Filed Date | 2005-02-17 |
United States Patent
Application |
20050038713 |
Kind Code |
A1 |
Pickard, Stuart G. ; et
al. |
February 17, 2005 |
Pooled transaction system
Abstract
A method of transacting sales over a computerized network
defines a first product desired to be purchased by a first
purchaser; correlates in a first database record the first product
and the first purchaser; further correlates in respective ones of a
plurality of first database records the first product and
respective ones of a plurality of second purchasers; issues an
offer to a vendor to purchase the first product at a first offer
price in a quantity responsive to the plurality of first database
records; and consummates a transaction between the vendor and the
first and second purchasers. Prior to performing the step of
issuing an offer there is further provided the step of calculating
a first commitment price, in response to a rate of performing the
step of further correlating. Alternatively, the first commitment
price may be responsive to historical sales performance of the
first product; a price trend of an article similar to the first
article; or a price trend of the first article itself over a
predetermined period of time. A second product desired to be
purchased by a first purchaser is defined. An offer is then made to
a vendor to purchase the second product at a second offer price in
a quantity responsive to the plurality of second database records.
A first consolidated report is issued in certain embodiments for
presentation to the first purchaser in response to the first and
second offer prices, and may include information from the first and
second database records.
Inventors: |
Pickard, Stuart G.; (Ann
Arbor, MI) ; Monsanto, Raphael A.; (Grosse Pointe,
MI) |
Correspondence
Address: |
Benita J. Rohm
ROHM & MONSANTO, P.L.C.
Suite 1525
660 Woodward Ave.
Detroit
MI
48226
US
|
Family ID: |
22554873 |
Appl. No.: |
10/842951 |
Filed: |
May 10, 2004 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
10842951 |
May 10, 2004 |
|
|
|
09668819 |
Sep 21, 2000 |
|
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|
60155301 |
Sep 21, 1999 |
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Current U.S.
Class: |
705/26.2 ;
705/26.62 |
Current CPC
Class: |
G06Q 30/0283 20130101;
G06Q 30/0241 20130101; G06Q 30/0605 20130101; G06Q 30/0625
20130101; G06Q 40/12 20131203; G06Q 30/0601 20130101; G06Q 30/06
20130101 |
Class at
Publication: |
705/026 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method of transacting sales over a computerized network, the
method comprising the steps of: defining a first product desired to
be purchased by a first purchaser; correlating in a first database
record the first product and the first purchaser; further
correlating in respective ones of a plurality of first database
records the first product and respective ones of a plurality of
second purchasers; issuing an offer to a vendor to purchase the
first product at a first offer price in a quantity responsive to
the plurality of first database records; and consummating a
transaction between the vendor and the first and second
purchasers.
2. The method of claim 1, wherein prior to performing said step of
issuing an offer there is further provided the step of calculating
a first commitment price.
3. The method of claim 2, wherein said step of calculating a first
commitment price is responsive to a rate of performing said step of
further correlating.
4. The method of claim 2, wherein said step of calculating a first
commitment price is responsive to historical sales performance of
the first product.
5. The method of claim 2, wherein said step of calculating a first
commitment price is responsive to a price trend of an article
similar to the first article.
6. The method of claim 5, wherein said step of calculating a first
commitment price is responsive to a price trend of the first
article.
7. The method of claim 1, wherein there are further provided the
steps of: defining a second product desired to be purchased by a
first purchaser; and correlating in the second database record the
second product and the first purchaser.
8. The method of claim 7, wherein there is further provided the
step of further correlating in respective ones of a plurality of
second database records the second product and respective ones of a
plurality of third purchasers.
9. The method of claim 8, wherein there is further provided the
step of issuing a further offer to a vendor to purchase the second
product at a second offer price in a quantity responsive to the
plurality of second database records.
10. The method of claim 9, wherein there is further provided the
step of formulating a first consolidated report for presentation to
the first purchaser responsive to the first and second offer
prices.
11. The method of claim 8, wherein there is further provided the
step of formulating a first consolidated report for presentation to
the first purchaser responsive to the first and second database
records.
12. A method of transacting sales over a computerized network, the
method comprising the steps of: defining a first product desired to
be purchased by a first purchaser; enabling the first purchaser to
search a product database for a pre-existing database record
associated with a product having a relationship to the first
product acceptable to the first purchaser; correlating in a first
database record the first product and the first purchaser; further
correlating in respective ones of a plurality of first database
records the first product and respective ones of a plurality of
second purchasers; and enabling a vendor of products having a
predetermined similarity to the first product to search the product
database.
13. The method of claim 12, wherein there is further provided the
step of consummating a transaction between the vendor and at least
some of the first and second purchasers.
14. The method of claim 13, wherein, prior to performing said step
of consummating a transaction there is provided the further step of
consummating a transaction between at least one vendor for a
quantity of the first product responsive to a predetermined portion
of the total number of first database records.
15. The method of claim 14, wherein, prior to performing said step
of consummating a transaction there is provided the further step of
consummating a transaction between at least one vendor for a
quantity of the first product responsive to the total number of
first database records.
16. A method of including a prospective purchaser in a pool in a
computerized network transaction system, the method comprising the
steps of: defining pool parameters responsive to a purchase desired
to be made by the purchaser; active searching an active pools
database for an active pool having a pool characteristic resembling
the pool parameters; active presenting a matching active pool
discovered in response to said step of active searching to the
prospective purchaser; and active installing the prospective
purchaser in the matching active pool in response to said step of
active presenting.
17. A method of including a prospective purchaser in a pool in a
computerized network transaction system, the method comprising the
steps of: defining pool parameters responsive to a purchase desired
to be made by the purchaser; inactive searching an inactive pools
database for an inactive pool having a pool characteristic
resembling the pool parameters; inactive presenting a first
matching inactive pool discovered in response to said step of
inactive searching; and forming a new pool having new pool
parameters similar to the first matching inactive pool.
18. The method of claim 17, wherein there is further provided the
step of commitment price calculating a new pool commitment
price.
19. The method of claim 18, wherein there are further provided the
steps of: obtaining a commitment by the purchaser to purchase a
product defined by the new pool parameters at the new pool
commitment price; and installing the purchaser in the new pool.
Description
RELATIONSHIP TO OTHER APPLICATION
[0001] This applications claims the benefit of the filing date of
United States Provisional Patent Application Ser. No. 60/155,301,
filed Sep. 21, 1999
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] This invention relates generally to systems for conducting
commercial transactions over a computerized network, and more
particularly, to a system wherein buyers and or sellers are pooled
to effect price reductions.
[0004] 2. Description of the Related Art
[0005] Conventional auction arrangements are generally directed
toward increasing the price at which the auctioned goods are sold
by causing the buyers to bid against each other. There is a need,
however, for a system of conducting sales of products and services
whereby buyers are aggregated and the consequently increased
purchasing power is applied to reduce the price at which the
products or services are sold. Thus, vendors compete for the larger
sale.
[0006] There is additionally a need to engage in price
determination based on actual manufacturers' suggested retail
priced ("MSRP") or actual prices at which such products or services
are available from other vendors ("Street Prices"), and actual
price trends and price break points. In situations, for example,
where the number of aggregated buyers is too great for a single
vendor, there is a need for a system of conducting sales of
products and services whereby vendors are aggregated.
SUMMARY OF THE INVENTION
[0007] The present invention provides in a method aspect thereof, a
method of transacting sales over a computerized network. The
present inventive method includes the steps of:
[0008] defining a first product desired to be purchased by a first
purchaser;
[0009] correlating in a first database record the first product and
the first purchaser;
[0010] further correlating in respective ones of a plurality of
first database records the first product and respective ones of a
plurality of second purchasers;
[0011] issuing an offer to a vendor to purchase the first product
at a first offer price in a quantity responsive to the plurality of
first database records; and
[0012] consummating a transaction between the vendor and the first
and second purchasers.
[0013] In one embodiment, prior to performing the step of issuing
an offer there is further provided the step of calculating a first
commitment price. The step of calculating a first commitment price
is, in some embodiments, responsive to a rate of performing the
step of further correlating. The first commitment price may be
responsive to historical sales performance of the first product; a
price trend of an article similar to the first article; or a price
trend of the first article itself over a predetermined period of
time.
[0014] In a further embodiment of the invention, there are further
provided the steps of:
[0015] defining a second product desired to be purchased by a first
purchaser; and
[0016] correlating in the second database record the second product
and the first purchaser.
[0017] There is provided in other embodiments the step of further
correlating in respective ones of a plurality of second database
records the second product and respective ones of a plurality of
third purchasers. There may further be provided the step of issuing
a further offer to a vendor to purchase the second product at a
second offer price in a quantity responsive to the plurality of
second database records. A first consolidated report is issued in
certain embodiments for presentation to the first purchaser in
response to the first and second offer prices. The first
consolidated report may include information from the first and
second database records.
[0018] In accordance with a further method aspect of the invention,
there is provided a method of transacting sales over a computerized
network. This method aspect includes the steps of:
[0019] defining a first product desired to be purchased by a first
purchaser;
[0020] enabling the first purchaser to search a product database
for a pre-existing database record associated with a product having
a relationship to the first product acceptable to the first
purchaser;
[0021] correlating in a first database record the first product and
the first purchaser;
[0022] further correlating in respective ones of a plurality of
first database records the first product and respective ones of a
plurality of second purchasers; and
[0023] enabling a vendor of products having a predetermined
similarity to the first product to search the product database.
[0024] In one embodiment, there is further provided the step of
consummating a transaction between the vendor and at least some of
the first and second purchasers. There may additionally be
provided, prior to performing the step of consummating a
transaction, the further step of consummating a transaction between
at least one vendor for a quantity of the first product responsive
to a predetermined portion of the total number of first database
records. In other embodiments, there is provided the further step
of consummating a transaction between at least one vendor for a
quantity of the first product responsive to the total number of
first database records.
[0025] In accordance with a still further method aspect of the
present invention, there is provided a method of including a
prospective purchaser in a pool in a computerized network
transaction system. This further method aspect includes the steps
of:
[0026] defining pool parameters responsive to a purchase desired to
be made by the purchaser;
[0027] active searching an active pools database for an active pool
having a pool characteristic resembling the pool parameters;
[0028] active presenting a matching active pool discovered in
response to the step of active searching to the prospective
purchaser; and
[0029] active installing the prospective purchaser in the matching
active pool in response to the step of active presenting.
[0030] In accordance with yet a further method aspect of the
present invention, there is provided a method of including a
prospective purchaser in a pool in a computerized network
transaction system, the method comprising the steps of:
[0031] defining pool parameters responsive to a purchase desired to
be made by the purchaser;
[0032] inactive searching an inactive pools database for an
inactive pool having a pool characteristic resembling the pool
parameters;
[0033] inactive presenting.a first matching inactive pool
discovered in response to the step of inactive searching; and
[0034] forming a new pool having new pool parameters similar to the
first matching inactive pool.
[0035] In one embodiment of this further aspect of the invention,
there is further provided the step of commitment price calculating
a new pool commitment price. Additionally, there may be provided,
in other embodiments, the further steps of:
[0036] obtaining a commitment by the purchaser to purchase a
product defined by the new pool parameters at the new pool
commitment price; and
[0037] installing the purchaser in the new pool.
BRIEF DESCRIPTION OF THE DRAWING
[0038] Comprehension of the invention is facilitated by reading the
following detailed description, in conjunction with the annexed
drawing, in which:
[0039] FIG. 1 is a simplified function block representation of a
specific illustrative embodiment of the invention wherein a
purchaser is afforded an opportunity to enter one or more
purchasers' pools;
[0040] FIG. 2 is a simplified function block representation of a
specific illustrative embodiment of the administrative interface
portion of the embodiment of FIG. 1;
[0041] FIG. 3 is a simplified function block representation of a
specific illustrative pricing process;
[0042] FIG. 4 is a is a simplified function block representation of
a specific illustrative process for determining whether to form a
purchaser pool; and
[0043] FIG. 5 is a simplified function block representation of a
specific illustrative embodiment of the invention wherein a vendor
is afforded an opportunity to enter a vendors' pool or to cause
formation of a new vendor pool.
DETAILED DESCRIPTION
[0044] FIG. 1 is a simplified function block representation of a
specific illustrative embodiment of the invention wherein a
registered purchaser 100 is afforded an opportunity to enter one or
more purchasers' pools, each such pool being directed to achieve
increased purchasing power based on pooled quantities to be
purchased, for a defined product type. For purposes of the present
discussion, it is assumed that each purchaser has been registered,
including receipt by the system administrator (not shown in this
figure) of payment information, and there has been formed an
enforceable purchase contract (offer and acceptance) between the
purchaser and the system administrator, including mutual
manifestations of intent to a determined set of terms, upon which,
as will be described below, the system administrator reasonable can
rely to issue purchase offers to, and enter into binding purchase
commitments with, vendors.
[0045] As shown in this figure, registered purchaser 100 engages in
a decision process by which he or she determines at decision block
101 the product(s) desired to be purchased. In making the decision,
the registered purchaser can browse, using a display 110, one or
more predefined product types that are stored in a database (not
shown) in an administrative interface 120. Administrative interface
120 will be described in greater detail hereinbelow in connection
with FIG. 2.
[0046] Display 110 in FIG. 1 presents, in this embodiment of the
invention, data to registered purchaser 100 relating to
preestablished on-going product or service pools that the
registered purchaser can join if the product or service desired to
be purchased by the searching registered purchaser is identical or
acceptably similar to the products specified in the existing pools.
The display can also make available to the registered purchaser the
status of the pools, including pools in which the registered
purchaser may participate, as well as the registered purchasers'
history in prior pools and status in on-going pools.
[0047] At such time as the registered purchaser has determined to
purchase an item, a decision is made at function block 102 whether
the product desired to be purchased is available in an existing
on-going pool or whether a new pool of purchasers needs to be
started. If the desired product is not available in any existing
pool, then the parameters that define the product desired to be
purchased are defined at function block 112, and this information
is submitted to administrative interface 120. As will be described
below in connection with FIG. 2, a decision is made, with
administrative authorization, to start a new product pool. This
procedure continues until all products desired to be purchased by
registered purchaser 100 are determined to be the proper subject of
an existing pool, or a pool that has been authorized by system
administration (not shown in this figure) to be formed.
Additionally, in situations where the registered user desires to
form an order comprised on multiple products, and the system
administration determines that an adequate pool for one or more of
such products in the order are not available in any existing pool
and the formation of a pool on any such product is declined, then
agreement is reached between the registered user and the system
administration as to whether the registered user will place an
order for the remaining product(s).
[0048] At such time as it is determined that all pools necessary
for fulfillment of the registered purchaser's order are in
existence or are agreed to be formed, the decision process proceeds
to decision block 103, and associated function blocks 113 and 115,
where database records are created responsive to the registered
purchaser's order. More specifically, if it is determined that the
order being placed by the registered purchaser can be accommodated
in a single pool, then a single pool data record is created at
function block 131. On the other hand, if the order spans several
pools, then a multiple pool data record is formed at function block
115. As will be described below, the order placed by registered
purchaser 100 is aggregated in appropriate pools with orders placed
by other registered purchasers (not shown) and these aggregated
orders are made available by way of purchase offers or by database
access to responsive vendors 140. The administrators in the
administrative interface will register vendors in an appropriate
database (not shown in this figure) and determine whether a vendor
that bids on a pool or a portion of a pool can reasonably be
expected to fulfil the orders. That is, the bidding vendors are
subjected to a prequalification and registration process.
[0049] At a predetermined time, the registered purchaser will enter
into a contract whereby he or she is bound contractually to the
order. Prior to that time, however, a change order request issued
by the registered purchaser at function block 130 will be
considered by the system administration in accordance with a
mutually agreed policy. Such policy will determine, for example,
the procedures to be followed when a registered user desires to
change a multi-pool order, particularly when one or more of the
relevant pools has proceeded to a commitment stage.
[0050] FIG. 2 is a simplified function block representation of a
specific illustrative embodiment of administrative interface
portion 120 of the embodiment of FIG. 1. As shown in FIG. 2, there
are provided a plurality of databases, such as purchasers database
210, active pools database 216, and vendors database 246. All of
these databases are monitored and controlled by a system
administration that is generally designated 250.
[0051] There is additionally provided a price data acquisition
arrangement 226 that obtains pricing information from a variety of
sources, including the internet. Such pricing information includes
current retail prices, manufacturers suggested retail prices
(MSRP), quantity/price breaks, wholesale prices, available odd
lots, and their prices, etc. The pricing data obtained by prices
data acquisition system 226 is stored in a current third party
prices database 225. Historical prices are stored in product
pricing/history memory 228. The old prices are useful to determine
price trends and other market information that will enable the
system administration to determine a commitment price.
[0052] Historical information is of value in enabling a pricing
determination to be made at a pricing engine 222. Thus, for
example, the history of prior pools that are now closed is stored
in a prior pools memory 218. This information is useful to the
system administration to determine whether the formation of a new
pool (see, function block 112 in FIG. 1) has a likelihood of being
successful. Similarly, pricing history information provided by
vendors in vendors database 246 is stored in a vendors pricing
history memory 242, and this information is useful in determining
the likelihood of success of a new pool and enables the system
administration to make a non-binding representation to registered
purchaser 100 of the amount that he or she can expect to save. All
of this historical pricing information from prior pool (218), prior
vendor bids (242), prior market prices (248), etc. when compared to
existing market prices (225), enable the system administration to
compute reasonably reliable expectations of savings (214) that will
attract the registered purchaser to place his or her order with
this system. In addition, prices data acquisition system 226 may,
in certain embodiments, be capable of obtaining prices from on-line
auction and other vendors that will enable presentation to the
registered purchaser of the attractive historical performance of
the present system.
[0053] In the practice of the invention, pools of aggregated
purchaser orders are formed, the pools having varying operational
characteristics. Some pools, for example, are created and have a
finite pool life. The duration of the pool life is determined by
pool and price cycle timer 240 which is controlled by system
administration 250. Thus, any such pool will expire at a
predetermined time, and its performance, as previously noted, is
stored in prior pools memory 218. Other pools, however, are
continuous in that a registered purchaser need not ever go through
the process (102, 112) of causing creation of such a pool. Such
continuous or standing pools, however, are subject to time-related
cycles controlled by timer 240 that determine the period of time
that a registered purchaser is in such a standing pool. The change
order request of function block 130 may, in some embodiments, be
used to enable a registered purchaser to extend the effective pool
cycle applicable to his or her order, in situations where such
registered purchaser believes prices will continue to fall and his
or her need of the product is not immediate. Additionally, when the
product to be purchased by the registered purchaser is a quantity
of a commodity, the change order function can be employed in
certain embodiments to portions of the order. The correlation
between active pools and purchasers, as well as change order
requests for pool cycle extensions, is controlled at function block
212. Timer 240 additionally controls the duration of a price cycle
that will be used compute the expected savings at function block
214.
[0054] The pricing engine represented at function block 222 need
not be entirely a computerized system. In some embodiments of the
invention, human intervention is employed in the pricing process,
illustratively under control of system administration 250.
[0055] FIG. 3 is a simplified function block representation of a
specific illustrative pricing process. As shown in this figure,
third party price information is received at function block 310.
Such information may be received via the vendor and third party
prices data acquisition system 226. The MSRP and the retail (or
"street") price are calculated at function block 312 and displayed
at system administration 250. In some embodiments, this information
can be made available to registered purchaser 100 at display 110 in
response to the computation of function block 214. This specific
embodiment of the invention then continues by calculating a
non-binding extrapolated low price based on data obtained from
vendors pricing history 242 and including, in some embodiments,
third party price trends calculated by pricing engine 222 from
information obtained from product pricing history memory 228 and
current third party prices database 225 over a period of time
determined by price cycle timer 240.
[0056] In this specific embodiment, those registered purchaser that
are in a pool in a non-binding manner prior to the formulation of a
first commitment price are termed "early buyers." An early buyers
commitment price is calculated at function block 314 based on the
extrapolated low price and a predetermined reserve for the system.
The early buyers are then afforded an opportunity to remain in the
pool by committing to purchase if the system can achieve a vendor
offer that permits them to purchase at a purchase price that is at
least as favorable as the early buyers commitment price. Such a
purchase price is displayed to the registered purchaser at function
block 320, which display may require reintegration of a multiple
pool order using the correlation between the active pools and the
purchasers in function block 212. Thus, in this embodiment, a
multiple pool order would be presented to the associated registered
purchaser in an integrated fashion whereby the purchaser does not
see the pricing for individual components for his or her order. In
some respects, therefore, the pooling system of the present
invention is transparent to the purchasers, except insofar as they
may optionally be provided access to individual pools as discussed
hereinabove in connection with the decision-making process of FIG.
1. The system administration will formulate policy regarding the
extent to which the pooling system and the pools are viewable by
the purchasers.
[0057] After the early purchasers have committed to purchase at the
early buyers commitment price, as presented to them at function
block 320, a purchase offer is calculated to vendors at function
block 322. The offer price may be responsive, in certain
embodiments, to the pool size (i.e., number of early buyers), the
third party price breaks, the extrapolated low price, etc. The
offer is conveyed to the vendors at node E, which includes direct
communication to vendors of requests for proposals, and direct
access by vendors of database information. In this specific
illustrative embodiment, active pool information can be made
available to the vendors via pricing engine 222 and vendors
database 246.
[0058] Following the offers to vendors, it is determined at
decision block 325 whether there has been received an acceptable
vendor offer. This decision may involve communication by the system
administrators with targeted vendors, and possibly some negotiation
that might involve raising the early buyers commitment price and
obtaining revised commitments from the early buyers. If the system
administrator determines that an acceptable vendor offer is not
reasonably available, then the buyers are notified and the pool
closed at function block 327. This may require recalculation or a
revised commitment on the part of a registered purchaser that has
placed an affected multiple pool order. However, if there is
available an initial acceptable vendor offer, then a commitment
price is calculated for purchasers who enter the pool after the
commitment by the early buyers, such subsequent buyers being termed
the "late buyers."
[0059] A commitment price is calculated for the late buyers and an
early buyers price advantage at function block 330. The commitment
price and the early buyers price advantage may, for example, be
responsive to price reductions resulting from increased pool size.
The late buyers' commitments are then obtained at the calculated
late buyer commitment target price, and the early buyers are
notified, in this embodiment, of a calculated early buyer price
advantage. Such an advantage would stimulate early commitment and
consequently produce in future pools a larger number of early
buyers. Moreover, the number of early buyers might be increased in
certain embodiments by conducting effective pool marketing on the
part of the system administrator using information from prior pools
memory 218, purchasers database 210, product pricing history memory
228, and current third party prices database 225.
[0060] Notwithstanding that some late buyers have committed to the
late buyers commitment target price at function block 332, in a
highly successful pool, additional late buyers will enter, thereby
increasing the pool size. Such pool size increase, coupled to
trends that may be evident from the current third party prices
database (225) enables continued negotiations with vendors at
function block 334 until the pool or the pool cycle times out by
operation of pool and price cycle timer 240. Upon expiration of the
pool or pool cycle, the final prices are calculated at function
block 336 and the pool or pool cycle is closed. The buyers and
vendors are then notified at function block 340 and a check-out
process is conducted. With respect to purchasers that have placed
orders that span multiple pools, such pools are integrated at
function block 342 in correlation with the associated purchasers
(function block 212). Such purchasers of multi-pool orders are
notified and checked-out at function block 340.
[0061] FIG. 4 is a simplified block representation of a specific
illustrative process for determining whether to form a purchaser
pool. As shown, pool parameters from a registered purchaser are
received at function block 410. Such parameters correspond to the
information defined at function block 112 of FIG. 1. In FIG. 4,
once the pool parameters are obtained a search is conducted at
function block 412 to identify the closest matching pool in active
pools database 216. Information relating to the closest matching
pool is presented to registered purchaser 100 and the acceptability
of the closest matching pool to the purchaser is determined at
decision function block 414. If the purchaser accepts to be
included in the presented closest matching active pool, the
purchaser is installed therein at function block 416. On the other
hand, if the purchaser deems the closest matching active pool to be
unacceptable, a search is conducted, in some embodiments of the
invention, of prior pools in prior pools memory 218 for the closest
matching prior pool. If such a prior pool is acceptable to the
purchaser, system administration 250 can determine at function
block 427 to form a new active pool using the parameters of the
acceptable prior pool, the decision being based in part on the
historical performance of such a pool. Such a new pool, therefore,
is formed under a first criteria that incorporates known historical
performance of a same or similar pool. Upon the formation of the
new pool, the pricing process is performed at function 429. In one
embodiment, the pricing process will follow the procedure described
in connection with FIG. 3.
[0062] In the event that the purchaser determines that the closest
matching prior pool presented at function block 418 is
unacceptable, the decision process proceeds to decision function
block 420 wherein the administration determines whether to form a
new pool under a second criteria, i.e., without the benefit of a
known history. If the administrative judgment is such that the
formation of a new pool without history is declined, the purchaser
is notified at function block 422. On the other hand, if the
administration determines to form a new pool, such is formed at
function block 431, and, the pricing process of function block 429
is performed. In all likelihood, the formation of a new pool under
the second criteria will require administrative monitoring, such as
at function block 435.
[0063] FIG. 5 is a simplified function block representation of a
specific illustrative embodiment of the invention wherein a vendor
is afforded an opportunity to enter a vendors pool or to cause
formation of a new vendor pool. As shown in this figure, a vendor
that has a product for sale, particularly in quantity, delivers at
function block 510 parameters that define a vendor pool (product
for sale) having certain product parameters associated therewith.
These include, for example, identification of the product type,
quantity available, and pricing information, including price
breaks. At function block 512, a pre-existing vendor pools database
(not shown) is searched to identify similar vendor pools, whereupon
the vendor is afforded an opportunity at decision block 514 to join
a pre-existing vendor pool. Such may be desirable to a vendor in
situations where the product being offered for sale is generally
purchased by vendors on a scale larger than the offering vendor's
available inventory. The similar vendor pool is then disclosed to
the offering vendor at function block 516, and the offering vendor
is offered an opportunity to join the pre-existing vendor pool at
function block 518.
[0064] If the vendor agrees to join such a pre-existing vendor
pool, the offering vendor is installed therein at function block
522. On the other hand, if the offering vendor prefers to form a
one-product one-vendor pool, such is formed at function block 520.
The new pool is correlated in the vendors database at function
block 524. Additionally, a corresponding purchaser pool is formed
at function block 526 which can be joined as previously described
by purchasers desiring to purchase all or some of the product of
the offering vendor.
[0065] Although the invention has been described in terms of
specific embodiments and applications, persons skilled in the art
can, in light of this teaching, generate additional embodiments
without exceeding the scope or departing from the spirit of the
invention described herein. Accordingly, it is to be understood
that the drawing and description In this disclosure are proffered
to facilitate comprehension of the invention, and should not be
construed to limit the scope thereof.
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