Manage Models Tab

You can set up various time intervals to use in the evaluation of a version of a DT and configure the value for maximum substitutable demand and see how different maximum values affect the substitutable demand. This allows you to change the maximum value to one you find more suitable. You can see the percentage of demand of a SKU that is retained when the SKU is deleted from the stores where it is selling. This is the substitutable demand percentage. In this way you can evaluate the accuracy and usability of the elasticity calculation.

Substitutable demand is a measure of how much demand is retained by the rest of the assortment when an item is removed. When the item is removed, a portion of its demand is transferred to the remainder of items in the assortment. This portion is considered the retained demand. If the magnitude of the assortment elasticity is larger, then the amount retained will be higher. By examining the retained demand, you can evaluate the assortment elasticity value to see if its magnitude is too large. The key value to examine is the maximum substitutable demand percentage. For a given category, you may decide that this value is too large.

Process

Here is the high-level process for determining suitable substitutable demand values and thus suitable DT models.

• Set up the time intervals you are interested in.

• Select the versions you want to evaluate.

• Click the Calculate icon to obtain an initial set of percentages.

• Enter various values for maximum substitutable demand and use the Edit icon to enter override values for Maximum Substitutable Demand Percent and the Calculate icon to determine the impact.

• You can use the Revert icon to restore the original percentage values.

• When you are satisfied with the results, you can choose which version to make active using the Set Version as Complete icon.