| Oracle® Retail Size Profile Optimization User Guide for the RPAS Fusion Client Release 14.1 E56467-01 |
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| Oracle® Retail Size Profile Optimization User Guide for the RPAS Fusion Client Release 14.1 E56467-01 |
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Preprocessing is performed to account for stock out situations and short lifecycle items in regards to item start and exit periods. Since sales history during stock-out situations and the launch and exit of an item is not a true indicator of demand, SPO has sophisticated preprocessing techniques to identify and flag these situations so that such data points are not taken into account while computing size profiles.
The Preprocessing Analysis task contains the following steps:
The Preprocessing Analysis workbook allows users to tune, override, and review the impact of updating preprocessing parameters before committing their updates to the preprocessing parameters. These updated parameters are then utilized by the next SPO batch run.
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Note: The results of preprocessing viewed within the Preprocessing Analysis workbook are not committed back to database; only the parameters themselves can be committed back to database. |
Preprocessing is executed prior to actual size profile generation in the SPO batch. Preprocessed or filtered sales history is used to generate size profiles.
Preprocessing has a nested approach to evaluating eligibility (or valid data points for consideration for size profile generation). The system first tries to identify start and end dates for all SKU/stores. Then it looks at historic sales and inventory data and eliminates data points with insufficient history and inventory at the start and end of an item lifecycle.
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Note: The default setting for preprocessing filtering in SPO is only executed for fashion items. It ignores all basic items. If you want to use preprocessing for basic items, see the SPO Implementation Guide for instructions. |
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Note: The start and end date of an item lifecycle are identified by season start and end dates for fashion SKUs and history start and end dates for basic SKUs. |
When the item start and end date of a SKU/store has been identified, its season length is calculated as
(end_dt - start_dt) / 7 + 1.
Next, the SKU/store/week, SKU/store, SKU parent/store, and SKU parent/store/week level data points are evaluated for eligibility.
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Note: If a SKU/store or SKU parent/store is considered ineligible, all corresponding data points (down to the SKU/store/week level) are considered ineligible for size profile calculation. |
The following points outline the preprocessing process:
SKU/store/week level eligibility is determined based on:
The SKU/store/week lying within the start and end dates determined as in the calculation given above.
No out of stock situation was observed for that SKU/store/week.
Criteria for stock out situation is again based on user specified thresholds for inventory levels (Inventory Units and Max Inventory Percentage threshold) and observed sales was above a certain user specified threshold (Sales Unit threshold - SKU/store/week eligibility).
If it belongs to an eligible SKU/store (criteria described below).
SKU/store level eligibility is determined based on:
Season length for the SKU/store is long enough (season length threshold).
Total sales for the SKU/store are not below a certain user-defined threshold (total sales threshold).
The SKU/store has significant eligible sales periods within its season length.
This is determined by taking the ratio of total eligible season weeks of the SKU/store to its season length and checking to see if it is above a user-defined threshold (eligible weeks percentage).
SKU parent/store/week eligibility is determined by:
For each given store, for the given week, if the SKU parent has significant enough SKUs (based on a user-defined threshold) that are eligible for that store/week, then the SKU parent is eligible for that store/week. Also, the number of SKUs should be greater or equal to certain percentage of the total number of sizes in the corresponding size range (the percentage is set by user).
If it belongs to an eligible SKU parent/store (criteria determined as below).
SKU parent/store eligibility:
Start and end dates calculated as median of the start and end dates of SKU/stores.
Number of eligible weeks for the SKU parent is greater than a user-defined threshold.
Number of eligible SKUs for the SKU parent is greater than a user-defined threshold.
The total sales units are greater or equal to certain threshold (set by user) for given SKU parent/store.
Table 3-1 Comparison of preprocessing
| Concepts | Normalized Size Profile | Optimized Size Profile |
|---|---|---|
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Definition |
Preprocessing for Normalized size profiles looks at the number of eligible SKU/store/weeks to determine if a stylecolor/store/week is eligible. |
Preprocessing for Optimized Size Profiles tries to utilize more data, by not rejecting non-stocked out SKU/store/weeks even if other sizes in the stylecolor had stocked out. This is because Optimized Size Profiles tries to estimate demand for the stylecolor/week/store first, and then calculates size profile distributions for the stylecolor. |
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Stocks Included for Size Profile |
In the event of a stock out in certain sizes for a given week, if the number of stocked out SKUs for the week exceeds a certain fraction (user defined threshold) of the total number of sizes in the size range, then the entire stylecolor/store/week is considered ineligible (or discarded by preprocessing) |
A sku/store/week is considered eligible if it belongs to an eligible sku-parent/store/week. |
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Mask Measures |
Normalized Sales Profile Elig Flag |
Eligible OptimizedSize Profile Mask |
The following diagram outlines how to use the Preprocessing Analysis workbook:
To build the Preprocessing Analysis workbook, perform the following steps:
Click the Create New Workbook icon in the Preprocessing Analysis task.
You may be prompted to select a domain if you have access to more than one domain. For information on domain selection, see "Selecting the Domain when Creating a New Workbook" in Chapter 2.
The Select Style/Color workbook wizard is displayed. Select the products you would like to analyze and for which you want to update parameters, and click Next.
The Select Store workbook wizard is displayed. Select the locations you want to examine, and click Next.
The Select Week workbook wizard is displayed. Select the weeks of history you want to examine, and click Finish. Note that all weeks selected here are considered for preprocessing.
The Preprocessing Analysis workbook is built.
In the Preprocessing Administration step, you can review default settings and specify item/location specific overrides if necessary. If certain special overrides need to be specified, SPO allows users to do so at the SKU/location or SKU parent/location level, depending on the override measure.
The following sections describe the views available in the Preprocessing Administration step:
The season start/end dates for preprocessing are displayed in this view. These represent the range of dates for which size profiles are being determined.
Table 3-2 Default Season Start/End Dates for Pre-Processing View Measures
| Measure | Description |
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Default Season Start Date |
Used for fashion items, this is the date that indicates the season start date. Used for preprocessing. |
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Default Season End Date |
Used for fashion items, this is the date that indicates the season end date. Used for preprocessing. |
The default parameters for preprocessing can be specified in this view.
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Note: The cells are hatched like scalar measures. To see the value, roll up the product dimension to All [Product]. |
The following table describes the measures available in this view.
Table 3-3 Default Parameters for Preprocessing View Measures
| Measure | Description |
|---|---|
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Default History Start Date |
Used to determine the history start date for the preprocessing window. |
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Default History End Date |
Used to determine the history end date for the preprocessing window. |
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Sales Unit Threshold (Start/End Date) |
The first and last date of history where sales units exceed this measure are used in the season length calculation. |
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Sales Plus Inventory Unit Threshold (Start/End Date) |
The first and last date of history where the sum of sales and inventory exceed this measure are used in the season length calculation. |
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Maximum Inventory Percentage Threshold (Start/End Date) |
The first and last date of history where ratio of sales plus inventory to maximum inventory for the SKU/Store exceed this threshold are used in the Season length calculation. |
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Max Inventory Percentage Threshold (SKU/Store/Week Eligibility) |
The SKU/store/week is considered eligible only if its inventory expressed as a percentage of the maximum inventory for the SKU/store is greater than the max inventory percentage threshold specified. |
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Sales Unit Threshold (SKU/Store/Week Eligibility) |
The SKU/store/week is considered eligible for size profile generation only if, the sales units for a given week, for that SKU/store need to exceed this sales unit threshold value. |
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Sales Plus Inventory Unit Threshold (Sku/Store/Week Eligibility) |
The SKU/store/week is considered eligible for size profile generation only if, the value of the sum of sales and inventory of a given week, for that SKU/store need to exceed this Sales plus Inventory Unit Threshold value. |
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Eligible Weeks Percentage Threshold (SKU/Store Eligibility) |
The minimum ratio of eligible weeks to season Length needed for the SKU/Store to be considered eligible |
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Total Sales Threshold (SKU/Store Eligibility |
Used in the SKU/store eligibility check. If the total sales for a SKU/store exceed this threshold, then it is considered eligible. |
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Season Length Threshold (SKU/Store Eligibility) |
A SKU/store is considered eligible if its season length calculated is above this threshold. |
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Eligible SKUs Percentage Threshold - Optimized (SKU Parent/Store/Week Eligibility) |
If the total number of eligible SKUs for a given SKU parent/store/week expressed as a percentage of total SKUs exceeds the threshold, then the SKU parent/store/week is considered eligible. This is for the optimized generation method. |
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Eligible SKUs Threshold - Optimized (SKU Parent/Store Eligibility) |
If the number of eligible SKUs for a given SKU parent/store exceeds this threshold, the SKU parent/store is considered eligible. This is for the optimized generation method. |
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Eligible SKU's Percentage Threshold - Normalized (SKU Parent/Store/Week Eligibility) |
.If the total number of eligible SKUs for a given SKU parent/store/week expressed as a percentage of total SKUs exceeds the threshold, then the SKU parent/store/week is considered eligible. This is for the normalized generation method. |
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Eligible SKU's Threshold - Normalized (SKU Parent/Store Eligibility) |
If the number of eligible SKUs for a given SKU parent/store exceeds this threshold, the SKU parent/store is considered eligible. This is for the normalized generation method. |
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SKU Parent/Store Eligible Week Threshold (SKU Parent/Store Eligibility) |
SKU parent/store eligible weeks threshold, used in SKU parent/store eligible calculation. Minimum number of weeks required for the SKU parent/store to be considered eligible. |
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Total Sales Threshold (SKU Parent/Store Eligibility) |
Used in the SKU parent/store eligibility check. If the total sales for a SKU parent/store exceed this threshold, then it is considered eligible. |
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Eligible SKU's Threshold (SKU Parent/Store/Week Eligibility) |
If the number of eligible SKUs for a given SKU parent/store/week is above this threshold, it is considered eligible. |
The Overrides view enables the user to override certain measures.
After all necessary overrides have been performed, you should execute preprocessing by clicking the Preprocessing planning action. When preprocessing is complete, a success dialog is displayed. You can then continue to the Preprocessing Results to view the preprocessing results.
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Note: In order to specify an override for SKU parent eligibility criteria, aggregate the view to SKU parent (or style/color level). |
The following table describes the measures available in this view.
Table 3-4 Overrides View Measures
| Measure | Description |
|---|---|
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Default History Start Date Override |
Used to override the history start date for the preprocessing window. |
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Default History End Date Override |
Used to override the history end date for the preprocessing window. |
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Default Season Start Date Override |
Season start date used specifically for this item and will override the default dates set up at higher levels. |
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Default Season End Date Override |
Season end date used specifically for this item and will override the default dates set up at higher levels. |
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Sales Unit Threshold Override (Start/End Date) |
The first and last date of history where sales units for the SKU/Store exceed this threshold are used in the season length calculation. |
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Maximum Inventory Percentage Threshold Override (Start/End Date) |
The first and last date of history where ratio of sales plus inventory to maximum inventory for the SKU/Store exceed this threshold are used in the Season length calculation. |
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Inventory Unit Threshold Override (Start/End Date) |
The first and last date of history where the inventory for the SKU/Store needs to exceed this inventory units threshold are used in the Season length calculation. |
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Sales Unit Threshold Override (SKU/Store/Week Eligibility) |
The SKU/store/week is considered eligible for size profile generation only if, the sales units for a given week, for that SKU/store need to exceed this sales unit threshold override value. |
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Max Inventory Percentage Threshold Override (SKU/Store/Week Eligibility) |
The SKU/store/week is considered eligible only if its inventory expressed as a percentage of the maximum inventory for the SKU/store is greater than the max inventory percentage threshold specified. |
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Sales plus Inventory Unit Threshold Override (SKU/Store/Week Eligibility) |
The SKU/store/week is considered eligible for size profile generation only if, the value of the sum of sales and inventory of a given week, for that SKU/store need to exceed this Sales plus Inventory Unit Threshold value. |
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Eligible Weeks Percentage Threshold Override (SKU/Store Eligibility) |
A SKU/store is considered eligible if the ratio of its eligible weeks to its season length exceeds this threshold. |
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Total Sales Threshold Override (SKU/Store Eligibility) |
Used in the SKU/store eligibility check, if the total sales for a SKU/store exceeds this threshold, then it is considered eligible. |
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Season Length Threshold Override (SKU/Store Eligibility) |
A SKU/store is considered eligible if its season length calculated is above this threshold. |
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Eligible SKU's Percentage Threshold Override - Optimized (SKU Parent/Store/Week Eligibility) |
If the total number of eligible SKUs for a given SKU parent/store/week expressed as a percentage of total SKUs exceeds the threshold, then the SKU parent/store/week is considered eligible. |
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Eligible SKU's Threshold Override - Optimized (SKU Parent/Store/Week Eligibility) |
If the number of eligible SKUs for a given SKU parent/store/week is above this threshold, it is considered eligible. This is for the optimized generation method. |
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SKU-Parent/Store Eligible Weeks Threshold Override (SKU Parent/Store Eligibility) |
Used in SKU parent/store eligible calculation. Minimum number of weeks required for the SKU Parent / Store to be considered eligible. |
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Total Sales Threshold Override (SKU Parent/Store Eligibility) |
Used in the SKU parent/store eligibility check. If the total sales for a SKU parent/store exceeds this threshold, then it is considered eligible. |
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Eligible SKU's Threshold Override - Normalized (SKU Parent/Store Eligibility |
If the number of eligible SKUs for a given SKU parent/store exceeds this threshold, the SKU parent/store is considered eligible for normalized generation method. |
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Eligible SKU's Percentage Threshold Override - Normalized (SKU Parent/Store/Week Eligibility) |
If the total number of eligible SKUs for a given SKU parent/store/week expressed as a percentage of total SKUs exceeds the threshold, then the SKU parent/store/week is considered eligible for normalized generation method. |
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Eligible SKU's Threshold Override (SKU Parent/Store Eligibility) |
If the number of eligible SKUs for a given SKU parent/store/week is above this threshold, it is considered eligible. |
The following sections describe the Preprocessing Results view available in the Preprocessing Results step.
On the Preprocessing Results view, you can review the product/location level preprocessing results by aggregating data along the calendar dimension or other hierarchies as necessary.
In Figure 3-10, you can see that there was no sales for week1. Therefore, that week was pruned for the purpose of size profile generation- for both the optimized and normalized methods.
When reviewing the impact of preprocessing on weekly data, you can compare actual sales to filtered or preprocessed sales and actual inventory to validate the results of preprocessing. You may find it helpful to view these results in graph mode.
The following table describes the measures available on this view.
Table 3-5 Preprocessing Results View Measures
| Measure | Description |
|---|---|
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Filtered Sales for Optimized Size Profile |
Filtered sales after applying preprocessing criteria for the optimized size profile generation method. |
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Pruned for Optimized Size Profile |
Indicates if a the SKU/store/week data point was considered eligible from the preprocessing run after applying preprocessing criteria for optimized size profile generation. |
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Filtered Sales for Normalized Size Profile |
Filtered sales after applying preprocessing criteria for the normalized size profile generation method. |
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Pruned for Normalized Size Profile |
Indicates if a the SKU/store/week data point was considered eligible from the preprocessing run after applying preprocessing criteria for normalized size profile generation. |
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Raw Sales |
Raw, unfiltered historic sales data. |
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End of Period Inventory |
Raw, unfiltered historic inventory data. |
The following sections describe the views available under the Preprocessing Summary Statistics step:
The Pre-Processing Summary view displays the filtered, and alerted sales for both normalized, and optimized size profiles.
The following table describes the measures available on this view.
Table 3-6 Pre-Processing Summary View Measures
| Measure | Description |
|---|---|
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05) Total Sales within User Defined Period |
The total sales within user specified start/end date. |
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Total Eligible SKUs for Optimized Size Profile |
Total eligible SKUs after applying preprocessing criteria for size profile generation using the optimized method. |
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Total Eligible Styles for Optimized Size Profile |
Total eligible styles after applying preprocessing criteria for size profile generation using the optimized method. |
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Total Alerted SKUs/Store for Optimized Size Profile |
Total alerted SKU/stores after applying preprocessing criteria for size profile generation using the optimized method. |
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Total Alerted SKUS for Optimized Size Profile SKUs |
Total alerted SKUs after applying preprocessing criteria for size profile generation using the optimized method. |
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Total Alerted Styles for Optimized Size Profile |
Total alerted styles after applying preprocessing criteria for size profile generation using the optimized method. |
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Filtered Sales for Optimized Size Profile |
Filtered sales after applying preprocessing criteria for size profile generation using the optimized method. |
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Total Unfiltered SKU's/Store |
Total unfiltered SKU/store count. |
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Total Unfiltered SKU's |
Total unfiltered SKU count. |
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Total Unfiltered Styles |
Total unfiltered style count. |
A measure profile allows you to view only certain measures within the view. The Pre-Processing Summary view has three measure profiles. The three measure profiles are as follows:
Default: This profile displays default measures in the view.
Normalized Size Profile: In this profile, the normalized values of the measures are displayed. The measures displayed are:
Filtered Sales for Normalized Size Profile
Total Unfiltered SKU/Store
Total Alerted SKU/Store for Normalized Size Profile
Total Alerted Style/Store for Normalized Size Profile
Total Unfiltered SKUs
Total Eligible SKUs for Normalized Size Profile
Total Alerted SKUs for Normalized Size Profile
Optimized Size Profile: In this profile, only the optimized values of the measures are displayed. The measures displayed are:
Filtered Sales for Optimized Size Profile
Total Unfiltered SKU/Store
Total Eligible SKU/Store for Optimized Size Profile
Total Alerted Style/Store for Optimized Size Profile
Total Unfiltered SKUs
Total Eligible SKUs for Optimized Size Profile
Total Alerted SKUs for Optimized Size Profile
The Pre Processing Summary Statistics- Style view displays the unfiltered, alerted, and eligible styles for both normalized and optimized size profile.
The following table describes the measures available on this view.
Table 3-7 Pre Processing Summary Statistics- Style View Measures
| Measure | Description |
|---|---|
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Total Eligible Styles for Normalized Size Profile |
Displays the number of eligible styles for size profile generation using the normalized method. |
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Total Alerted Styles for Normalized Size Profile |
Displays the number of alerted styles for size profile generation using the normalized method. |
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Total Alerted Styles for Optimized Size Profile |
Displays the number of alerted styles for size profile generation using the optimized method. |
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Total Eligible Styles for Optimized Size Profile |
Displays the number of eligible styles for size profile generation using the optimized method. |
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Total Unfiltered Styles |
Total number of unfiltered style count. |
The Pre Processing Summary Statistics- Style view has three measure profiles as described below:
Default: The default profile displays all the measures in the view
Normalized Size Profile: In this view, the following measures are displayed:
Total Unfiltered Styles
Total Alerted Styles for Normalized Size Profile
Total Eligible Styles for Normalized Size Profile
Optimized Size Profile: In this profile, the following measures are displayed:
Total Unfiltered Styles
Total Alerted Styles for Optimized Size Profile
Total Eligible Styles for Optimized Size Profile
