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Oracle® Retail Demand Forecasting Cloud Service User Guide
Release 19.0
F24922-17
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10 Forecast Setup Short Lifecycle Task

This chapter describes the Forecast Setup Short Lifecycle task for RDF Cloud Service.

Forecast Setup SLC Workspaces, Steps, and Views

The following table lists the workspaces, steps, and views for the Forecast Setup Short Lifecycle task.

Forecast Setup SLC Workspace

The Forecast Setup SLC workspace allows you access to all of the views listed in Forecast Setup SLC Workspaces, Steps, and Views.

To build the Forecast Setup SLC workspace, perform these steps:

  1. From the left sidebar menu, click the Task Module to view the available tasks.

    Figure 10-1 Task Module

    Surrounding text describes Figure 10-1 .
  2. Click the Forecast activity and then click Setup to access the available workspaces.

  3. Click Short Lifecycle. The Short Lifecycle wizard opens.

    You can open an existing workspace, but to create a new workspace, click Create New Workspace.

    Figure 10-2 Short Lifecycle Wizard

    Surrounding text describes Figure 10-2 .
  4. Enter a name for your new workspace in the label text box and click OK.

    Figure 10-3 Enter Workspace Label

    Surrounding text describes Figure 10-3 .
  5. The Workspace wizard opens. Select the products you want to work with and click Next.

    Figure 10-4 Workspace Wizard: Select Products

    Surrounding text describes Figure 10-4 .
  6. Select the locations you want to work with and click Finish.

    Figure 10-5 Workspace Wizard: Select Locations

    Surrounding text describes Figure 10-5 .
  7. The wizard notifies you that your workspace is being prepared. Successful workspaces are available from the Dashboard.

    Figure 10-6 Successful Workspace Build

    Surrounding text describes Figure 10-6 .

This workspace contains these steps:

General Step

The available views are:

Basic Parameters View

The Basic Parameters view allows you to view and set high level information. For instance, you can set the approval policy or determine the time frame for which forecast is required.

Figure 10-7 Basic Parameters View

Surrounding text describes Figure 10-7 .

Measures: Basic Parameters View

The Basic Parameters view contains the following measures:

Data Source

This measure displays the name of the data source used to create the forecast.

Approval Method

This field is a list from which you select the default automatic approval policy for forecast items. Valid values are:

  • Manual

    The system-generated forecast is not automatically approved. Forecast values must be manually approved by accessing and amending the Forecast Review workspace

  • Automatic

    The system-generated quantity is automatically approved as is.

  • By Alert

    This list of values may also include any Forecast Approval alerts that have been configured for use in the forecast approval process. Alerts are configured during the implementation and can be enabled to be used for Forecast Approval in the Enable Alert for Forecast Approval view. Refer to the Oracle Retail Predictive Application Server Configuration Tools User Guide for more information on the Alert Manager. The Alert Parameters view contains a list and descriptions of available alerts, and for which level (causal/baseline) that they are designed for.

Forecast Length

The Forecast Length is used with the Forecast Start Date to determine forecast horizon. The forecast length is based on the calendar dimension of the final-level. For example, if the forecast length is to be 10 weeks, the setting for a final-level at day is 70 (10 x 7 days).

Forecast Start Date

This is the starting date of the forecast. If no value is specified at the time of forecast generation, the system uses the data/time at which the batch is executed as the default value. If a value is specified in this field and it is used to successfully generate the batch forecast, the value stays and serves as the forecast start date of next batch. It is your responsibility to update it after every forecast batch.


Note:

Oracle recommends that you leave this field empty so that forecast start date is rolled forward automatically by the system time when the batch is executed. This field is really for special purposes such as an Acceptance Test. Make sure it is cleared so that the system returns to a normal schedule.

Advanced Parameters View

The Advanced Parameters view allows you to set default values for parameters affecting the algorithm and forecasting techniques used to generate base demand.

Base demand is the only forecast component updated during the forecasting step. The other components, such as price effect or seasonality are calculated in the estimation step.

Figure 10-8 Advanced Parameters View

Surrounding text describes Figure 10-8 .

Measures: Advanced Parameters View

The Advanced Parameters view contains the following measures:

Adjust Forecast Method

This measure allows you to choose how to automatically adjust the system generated forecast. The options are:

  • No Adjustment

    No adjustment is made to the system generated forecast

  • Keep Last Change

    If any adjustments were done to the forecast in the previous runs, they are reflected in the Adjusted Forecast measure. In this use case, the total forecast is retained.

  • Keep Last Baseline

    If any adjustments were done in the Adjusted Baseline in the previous runs, they are retained. In this use case. the system calculated peaks are applied on the Adjusted Baseline

  • Keep Last Peak

    If any adjustments were done in the Adjusted Peak measure in the previous runs, they are retained. In this use case, the adjusted peaks are applied on the system calculated baseline.

The following tables detail the calculation for measures by the option selected in Forecast Setup.

Table 10-1 Option Selected in Forecast Setup: Keep Last Change

Measure in Forecast Review Workbook Calculation

Adjusted Forecast

= Adjusted Baseline + Adjusted Peak

No change to Adjusted Forecast unless the promo calendar has changed (occurs when promos have been enabled or disabled for some weeks). In that case, it adds the System Peak in.

Adjusted Baseline

Either:

  • Last Approved Baseline (if there is a change to the baseline forecast)

  • System Baseline (if there is no change to the baseline forecast)

Adjusted Peak

Either:

  • Last Approved Peak (if there is a change to the peak and if system peaks exist*; if they do not exist, the adjusted peak will be zero),

  • System Peak (if there is no change to the peak, or last approved peak is 0)

* promotion was found significant


Table 10-2 Option Selected in Forecast Setup: Keep Last Baseline

Measure in Forecast Review Workbook Calculation

Adjusted Forecast

= Adjusted Baseline + Adjusted Peak

Adjusted Baseline

Either:

  • Last Approved Baseline (if there is a change to the baseline forecast)

  • System Baseline (if there is no change to the baseline forecast)

Adjusted Peak

System Peak


Table 10-3 Option Selected in Forecast Setup: Keep Last Peak

Measure in Forecast Review Workbook Calculation

Adjusted Forecast

= Adjusted Baseline + Adjusted Peak

Adjusted Baseline

System Baseline

Adjusted Peak

Either:

  • Last Approved Peak (if there is a change to the peak and if system peaks exist*; if they do not exist, the adjusted peak will be zero),

  • System Peak (if there is no change to the peak, or last approved peak is 0)

* promotion was found significant


History Length

This measure determines how many data points prior to RPAS_TODAY are used to generate base demand.

History Prerange Length

This measure lets you control how many calendar positions are showed in the wizard prior to RPAS_TODAY when building the Forecast Review workbook.

The historical positions (before RPAS_TODAY/forecast start date) displayed in the wizard are decided by the number entered here, and the history length used to forecast the level.

If the number displayed here is 10 and the history length is 17, the number of positions before today, are pre-ranged in the wizard to:

MAX (History Prerange Length, History Length) = MAX (10, 17) = 17

In Season Sales Periods Threshold

This measure displays the number of periods elapsed from the first sale of an item before it is considered in season. Only after this number of periods, the base demand of the item is calculated its own sales.

Updating Last Week Forecast

This field is a list from which you can select the method for updating the Approved Forecast for the last specified number of weeks of the forecast horizon. This option is valid only if the Approval Method Override is set to Manual or Approve by alert, and the alert was rejected. The choices are:

  • No change

    When using this method, the last week in the forecast horizon does not have an Approved Forecast value. The number of weeks is determined number of weeks elapsed between the forecast start date and the last approval date.

  • Replicate

    When using this method the last weeks in the forecast horizon are forecast using the Approved Forecast for the week corresponding to the last approval date.

  • Use Forecast

    When using this method, the System Forecast for the last weeks in the forecast horizon is approved.

Interval Lower Ratio

The value entered in this field multiplied by the forecast represents the lower bound of the confidence interval for a given period in the forecast horizon.

Interval Upper Ratio

The value entered in this filed multiplied by the forecast represents the upper bound of the confidence interval for a given period in the forecast horizon.

In Season Forecast Method

This is a complete list of available forecast methods from which you can select the primary forecast method that is used to generate the forecast. (For methods refer to Doc ID: 2492295.1 for the Oracle Retail Demand Forecasting Cloud Service Seasonality Estimation Methods White Paper).

Min Holt

Min Holt is the minimum number of periods of historical data necessary for the system to consider Holt (TrendES) as a potential forecasting method.

Max Alpha

The system default is 13 periods. The value must be set based on the calendar dimension of the level. For example, if the value is to be 13 weeks, the setting for a final-level at day is 91 (13x7days) and a source-level at week is 13.

Max Gamma

In the Holt (TrendES) model-fitting procedure, gamma (a model parameter capturing the trend) is determined by optimizing the fit over the time series. This field displays the maximum value (cap value) of gamma allowed in the model-fitting process. The allowable range is [0, 1]

Min Croston Gaps

The Croston's Min Gaps is the default minimum number of gaps between intermittent sales for the batch forecast to consider Croston's (Simple/IntermittentES) as a potential AutoES forecasting method for a time series. If there are not enough gaps between sales in a given product's sales history, the Croston's model is not considered a valid candidate model. The system default is five minimum gaps between intermittent sales. The value must be set based on the calendar dimension of the level. For example, if the value is to be 5 weeks, the setting for a final-level at day is 35 (5x7days) and a source-level at week is 5.

Run Forecast

This field lets you specify if the forecast should be run for this final level. This is useful if multiple final levels are available, and the need is to forecast only a subset of them.

Intermediate Level View

It allows you to view and set high level information, but beneath the global settings. For instance, you can select the approval policy or determine the history length used to calculate base demand.

Figure 10-9 Intermediate Level View

Surrounding text describes Figure 10-9 .

Measures: Intermediate Level View

The Intermediate Level view contains the following measures:

Forecast Length

The Forecast Length is used with the Forecast Start Date to determine forecast horizon. The forecast length is based on the calendar dimension of the final-level. For example, if the forecast length is to be 10 weeks, the setting for a final-level at day is 70 (10 x 7 days).

If the final level is at day, and the forecast length override is specified, it can happen that the week level forecast is generated for an additional week in the future. However, when spread to day, the forecast length is respected.

The previous circumstance covers for the following case. The forecast is generated on a Tuesday, and the forecast length override 14. If a week is starting Monday, the forecast generated at week level is going to be three weeks long. However, it is going to be spread to day for only the desired 14 days.

Approve Method

This field is a list from which you select the default automatic approval policy for forecast items. Valid values are:

  • Manual

    The system-generated forecast is not automatically approved. Forecast values must be manually approved by accessing and amending the Forecast Review view.

  • Automatic

    The system-generated quantity is automatically approved as is.

  • By Alert

    This list of values may also include any Forecast Approval alerts that have been configured for use in the forecast approval process. Alerts are configured during the implementation and can be enabled to be used for Forecast Approval in the Enable Alert for Forecast Approval view. Refer to the Oracle Retail Predictive Application Server Configuration Tools User Guide for more information on the Alert Manager. The Alert Parameters view contains a list and descriptions of available alerts, and for which level (causal/baseline) that they are designed for.

Adjust Forecast Method

This measure allows you to automatically adjust the system generated forecast.

The options are:

  • No Adjustment

    No adjustment is made to the system generated forecast

  • Keep Last Change

    If any adjustments were done to the forecast in the previous runs, they are reflected in the Adjusted Forecast measure. In this use case, the total forecast is retained.

  • Keep Last Baseline

    If any adjustments were done in the Adjusted Baseline in the previous runs, they are retained. In this use case. the system calculated peaks are applied on the Adjusted Baseline

  • Keep Last Peak

    If any adjustments were done in the Adjusted Peak measure in the previous runs, they are retained. In this use case, the adjusted peaks are applied on the system calculated baseline.

  • Demand Transference

    If Demand Transference is enabled in the plug-ins, and the necessary data is interfaced to RDFCS, and significant demand transference effects are detected, this options incorporates demand transference effects in the adjusted forecast. If demand transference effects are not zero, the system and adjusted forecasts will be different.


Note:

The Demand Transference effects are calculated outside RDFCS. A good candidate is ORASE, the Oracle Retail science platform


Note:

Tables (UNKNOWN STEP NUMBER) , (UNKNOWN STEP NUMBER) , and (UNKNOWN STEP NUMBER) provide details for measure calculations for options selected in Forecast Setup.

Final Parameters View

The Final Parameters view allows you to override some default measures, such as forecast method or override the approval policy. It also displays some measures that require a lower intersection than escalation level, like the plan start and end dates.

Figure 10-10 Final Parameters View

Surrounding text describes Figure 10-10 .

Measures: Final Parameters View

The Final Parameters view contains the following measures:

In Season Forecast Method Override

This is the override of the In Season Forecast Method available in the Advanced Parameters view.

Approval Method Override

Set only at the final-level, the Approval Method Override is a list from which you select the approval policy for individual product/location combinations. The options are:

  • No Override

    The default approval policy is used

  • Manual

    The system-generated forecast is not automatically approved. Forecast values must be manually approved by accessing and amending the Forecast Review view

  • Automatic

    The system-generated quantity is automatically approved as is.

  • By Alert

    This list of values may also include any Forecast Approval alerts that have been configured for use in the forecast approval process. Alerts are configured during the implementation and can be enabled to be used for Forecast Approval in the Enable Alert for Forecast Approval view. Refer to the Oracle Retail Predictive Application Server Configuration Tools User Guide for more information on the Alert Manager. The Alert Parameters view contains a list and descriptions of available alerts, and for which level (causal/baseline) that they are designed for.

Plan Start Date

This represents the date when the item starts selling.

Plan End Date

This represents the date when the item stops selling.

History Length Override

Override of the number of data points in history used to estimate the base demand.

Escalation Path Step

The available views are:

Escalation Path View

The Escalation Path view shows the available escalation levels for short lifecycle items, and allows you to set priorities for each level.

Figure 10-11 Escalation Path View

Surrounding text describes Figure 10-11 .

Measures: Escalation Path View

The Escalation Path view contains the following measures:

Escalation Path

The user can specify the priority in which the system searches escalation levels for forecast parameters like seasonality curves and/or promotion effects. For instance, suppose there are three escalation levels available. The path may be defined as follows:

  • Escalation Level #1: priority 3

  • Escalation Level #2: priority 4

  • Escalation Level #3: priority 2

In this case, when generating the forecast, the system will first look to get parameters from Escalation Level #3 (highest priority). If the are available, they are used. If they are not available, because they were deemed unreliable and pruned, the system will go to Escalation Level #1 (second highest priority). Finally, if the search is not successful, the search continues at Escalation Level #2.

Escalation Path Override View

The Escalation Path Override view allows you to choose to bypass the escalation search, by suggesting a level from which the forecast parameters are used.

However, if the forecast parameters for that level were deemed unreliable and pruned, the search will follow the default escalation path.

Figure 10-12 Escalation Path Override View

Surrounding text describes Figure 10-12 .

Measures: Escalation Path Override View

The Escalation Path Override view contains the following measures:

Escalation Path Override

In this field the user can override the default escalation path selections. She can enter the preferred Escalation Level, and that will become the top priority. However, if the forecast parameters for that level were deemed unreliable and pruned, the search will follow the default escalation path.

In Season Step

This step includes the Basic Parameters View.

Basic Parameters View

The Basic Parameters view contains metrics used in short lifecycle exceptions calculations

Figure 10-13 Basic Parameters View

Surrounding text describes Figure 10-13 .

Measures: Basic Parameters View

The Basic Parameters view contains the following measures:

Alert – Average Sales Threshold

Threshold used in deciding if average sales are high or low, depending on how they compare against the value.

Alert – Calculation Periods

The number stored in this field defines the number of calculations periods used in generating exceptions.

Alert – Error Threshold

This field stores the value that determines if a forecast error is acceptable, or if it needs to be flagged as exception.

Recent Sales Window

This field determines the time frame over which recent sales are considered in the exception calculations. The time frame is defined starting today and going back the specified number of periods.

Intermediate Level View

The Intermediate Level view contains metrics used in short lifecycle exceptions calculations at a more granular level than the In SeasonBasic Parameters View.

Figure 10-14 Intermediate Level View

Surrounding text describes Figure 10-14 .

Measures: Intermediate Level View

The Intermediate Level view contains the following measures:

Alert – Average Sales Threshold

Threshold used in deciding if average sales are high or low, depending on how they compare against the value.

Alert – Calculation Periods

The number stored in this field defines the number of calculations periods used in generating exceptions.

Alert – Error Threshold

This field stores the value that determines if a forecast error is acceptable, or if it needs to be flagged as exception.

Recent Sales Window

This field determines the time frame over which recent sales are considered in the exception calculations. The time frame is defined starting today and going back the specified number of periods.