Lines and Ladders: A Context-Aware Multi-Agent Framework for Large-Scale Retail Price Taxonomy

Maintaining price consistency and executing an Every Day Low Price strategy is critical for global retailers. However, with catalogs spanning millions of active items, manual governance of price relationships is infeasible. Inconsistent pricing across item variants distorts customer value perception and cannibalizes sales. To address this, we present a scalable, context-aware Multi-Agent Framework designed to automate the construction of "Lines and Ladders" pricing taxonomies. Our framework employs specialized LLM agents to construct these coherent pricing structures by identifying key attributes, extracting multi-modal values, and applying hierarchical grouping logic. Evaluated on real-world enterprise data and deployed in production, our 3-Agent system achieves an F1-score of 0.83 for Lines, outperforming single-agent baselines by mitigating cognitive overload. The system achieves >90% precision and >75% recall in Food & Consumables, and 80.2% assignment accuracy in the unstructured General Merchandise catalog.

Demand Transfer Estimation at Scale via Restricted Logit Modeling

Item demand forecasting is an integral component of store assortment optimization. Existing literature focuses on learning a suitable customer choice model and using this model to determine the value of an objective function (i.e. expected demand) with respect to an assortment proposal. However, for large item universe with many categories, this approach can prove inefficient, needing a separate demand forecast for every possible item assortment. An alternate approach exists whereby we combine the efficiency of forecasting item demand independently, while at the same time applying adjustments to the independent forecasts that account for the relations between item demand and the availability of other similar items on the shelf. Central to this approach is the estimation of Demand Transfer (DT) coefficients. These DT coefficients represent the percent of a particular target item's (item that the customer walked in the store to buy) demand that is redirected to each other item in the universe should the target item be removed from the shelf. We introduce an approach that allows us to compute these DT coefficients on large item universes (assortments having 1 million+ items). Experiments on data as well as historical transaction data for multiple locations within categories demonstrate that when certain reasonable assumptions about substitution behavior are satisfied, our procedure is able to accurately estimate underlying DT coefficients and lead to improvements in demand forecasting.

Monodense Deep Neural Model for Determining Item Price Elasticity

Item Price Elasticity is used to quantify the responsiveness of consumer demand to changes in item prices, enabling businesses to create pricing strategies and optimize revenue management. Sectors such as store retail, e-commerce, and consumer goods rely on elasticity information derived from historical sales and pricing data. This elasticity provides an understanding of purchasing behavior across different items, consumer discount sensitivity, and demand elastic departments. This information is particularly valuable for competitive markets and resource-constrained businesses decision making which aims to maximize profitability and market share. Price elasticity also uncovers historical shifts in consumer responsiveness over time. In this paper, we model item-level price elasticity using large-scale transactional datasets, by proposing a novel elasticity estimation framework which has the capability to work in an absence of treatment control setting. We test this framework by using Machine learning based algorithms listed below, including our newly proposed Monodense deep neural network. (1) Monodense-DL network -- Hybrid neural network architecture combining embedding, dense, and Monodense layers (2) DML -- Double machine learning setting using regression models (3) LGBM -- Light Gradient Boosting Model We evaluate our model on multi-category retail data spanning millions of transactions using a back testing framework. Experimental results demonstrate the superiority of our proposed neural network model within the framework compared to other prevalent ML based methods listed above.