6 Location Clustering Workbook

The Location Clustering workbook allows users to cluster locations based on similarity of their size profiles.

Size clusters in the context of SPO are useful for determining prepacks that are best suited to each cluster, and may be used in downstream applications such as Assortment Planning and Allocation.

The Location Clustering workbook has the following worksheets:

• Number of Clusters Worksheet

• Final Approved Size Profile Worksheet

• Cluster Profile Results Worksheet

• Location Clusters Membership Worksheet

• Location Count Worksheet

Using the Location Clustering Workbook

Figure 6-1 Process Flow for the Location Clustering - Per Class

This workbook is used to define the prepack combinations that can be used by downstream solutions.

Creating Location Clusters

1. Use the Location Clustering workbook within SPO to create location clusters for each size range.

2. Create up to ten clusters based on location size profiles for each size range and attribute.

3. The clusters for each size range and attribute combination are independent of one another.

4. Use the list in the Number of Clusters Worksheet to select the number of clusters required for the class.

Planning Action

The Location Clustering menu option creates location clusters and assigns each of the selected locations to one of the clusters.

Figure 6-2 Planning Action for Location Clustering Workbook

Location Clustering Wizard

To open a Location Clustering workbook:

1. From the File menu, select New or click the New button.

2. On the SizeOpt tab, select 5. Location Clustering and click OK.

   Figure 6-3 Creating a New Location Clustering Workbook

   
   

3. The Products to be Selected screen is displayed. Select the class for which the store clusters have to be created, and click Next.

   Figure 6-4 Location Clustering Wizard - Products to be Selected Screen

   
   

4. The Locations to be Selected screen is displayed. Select the locations, and click Finish.

   Figure 6-5 Location Clustering Wizard - Locations to be Selected Screen

   
   

Number of Clusters Worksheet

This worksheet is used to define the number of clusters required for the selected class.

Figure 6-6 Number of Clusters Worksheet

The following table describes the measures available on this worksheet.

Table 6-1 Numbers of Clusters Worksheet Measures

Measure	Description
Number of Clusters	Select the number of clusters required for the class.

After you have specified the number of clusters, use the Location Clustering option in the Clustering menu to perform the following:

1. Create as many location clusters as needed based on the centroids of the size profiles.

2. Assign each of the locations to one of the available clusters, based on the relationship of the location's size profile to that of the cluster.

Final Approved Size Profile Worksheet

This worksheet displays the escalated profile that was eventually approved. This is the size profiles that is used in Location Clustering in the next step.

Figure 6-7 Final Approved Size Profile Worksheet

The following table describes the measures available on this worksheet.

Table 6-2 Escalated Profile Worksheet Measures

Measure	Description
Final Approved Size Profile	This measure displays the resulting size profile that applies to the given escalation level. It is the data source for clustering.

Cluster Profile Results Worksheet

This worksheet displays the cluster profile results. A centroid is the average of the members in that cluster. This worksheet is used to view the profiles of the clusters that would be created.

Figure 6-8 Cluster Profiles Results Worksheet

Location Clusters Membership Worksheet

This worksheet shows the assignment of each of the locations to one of the clusters for the selected class.

Figure 6-9 Location Clusters Membership Worksheet

The following table describes the measures available on this worksheet.

Table 6-3 Location Clusters Membership Worksheet Measures

Measure	Description
Cluster Membership ID	Displays the assignment of each of the locations to one of the clusters for the selected class.

Location Count Worksheet

This worksheet displays the total number of locations in that cluster for every size range and attribute within the class.

Figure 6-10 Location Count Worksheet

Table 6-4 Location Count Worksheet Measures

Measure	Description
Store Count	Displays the total number of locations in the cluster