Blue Yonder's pricing software uses machine learning to automatically calculate the best price for each product at each store location, including when and how deeply to discount perishable items like fresh food to minimize waste. Retailers using the system have reported profit increases of 5% or more.

Blue Yonder's Lifecycle Pricing solution uses machine learning to forecast demand at the store, day, and item level, learning the true relationship between price changes and demand response. A mathematical optimization engine (powered by Gurobi Optimizer) solves the complex pricing model and can complete the nightly optimization run for an entire retail chain in under one hour. A separate Pricing Real Time product uses proprietary AI to calculate store-specific price elasticities (how sensitive customers at a given location are to price changes) for fresh food markdowns — generating daily store-specific discount recommendations to clear short-dated inventory profitably. A Pulse AI Markdown Predictor microservice autonomously recommends the optimal timing and depth of price reductions. UK grocer Morrisons uses the system to reduce food waste and store labor costs associated with manual markdown decisions.