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Analysis Settings

The following settings are used when running Analytics

  1. Classification Basis: The basis for calculating the ABC Business Importance value in the Classification Analysis Analytic by item and if applicable, location. The three options are Revenue (sales), Margin, or Cost.
  2. Excess Inventory Threshold: Number of days above lead time to begin calculating excess. We recommend no more than 90 days. Used in custom reporting and dashboards.
  3. Lead Time Performance Buffer: This is related to the purchase order, shop order, and customer order on time performance measure. Entering a number of 1 or above will calculated on time performance within + or of that number. For example, if 3 is entered then on time performance will be calculated as 100% if the delivery falls within +/- 3 days of the due date. If it is greater or less than 3 days of the due date then it will be considered late or early. Use in the Lead Time analytic.
  4. Weeks with no demand stocking threshold: Sets the number of consecutive weeks of no demand where an item will automatically be designated as an "Order" item. When this value is set, the Stocking Analysis will set the item stocking status to "Order"
  5. Coefficient of variation: The value that defined when an item is forecastable versus unforecastable. The coefficient of variation is calculated by dividing the standard deviation to the mean (52 week average of independent demand)
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