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Oracle® Retail Analytic Parameter Calculator for Regular Price Optimization User Guide for the RPAS Fusion Client
Release 16.0
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2 Administration Task

The Administration task enables you to set up parameters and escalation paths for the application. This chapter describes the views and the relevant parameters that appear in the Administration task, which includes the following steps:

Accessing the Administration Task

To access the Administration task, perform the following steps:

  1. Log on to the RPAS Fusion Client. For more information, see Logging On to APC-RPO.

  2. In the APCRPO activity in the taskflow, click the Create New Workbook icon in the Administration task.

    Figure 2-1 Administration Task

    Surrounding text describes Figure 2-1 .

    The workbook opens at the Setup Step.


    Note:

    To open an existing workbook, click Show List of All Workbooks next to the task or step you want. The Open Workbook window is displayed and enables you to open an existing workbook.

Setup Step

The Setup step includes the Batch Setup view.

Batch Setup View

This view provides you the ability to enable or disable data processes when the APC-RPO batch is run.

Figure 2-2 Batch Setup View

Surrounding text describes Figure 2-2 .

Table 2-1 describes the measures in this view:

Table 2-1 Measures in the Batch Setup View

Measure Description

Enable Archiving Current Approved Elasticities

Select this check box to enable the archiving current approved elasticities process.

Enable History Data Filtering

Select this check box to enable the history data filtering process.

Enable Data Transformation and Filtering

Select this check box to enable the transformation and filtering process for the historical data.

Enable Raw Elasticity Generation and Filtering

Select this check box to enable the raw self elasticity generation and filtering process.

Enable Self Elasticity Generation and Filtering

Select this check box to enable the self elasticity generation and filtering process.

Enable HALO Type Cross Elasticity Generation

Select this check box to enable the HALO type cross elasticity generation process.

Enable Cannibalization Type Elasticity Generation

Select this check box to enable the cannibalization type elasticity generation process.


After you have configured the batch setup, continue to the Escalation Path Management Step.

Escalation Path Management Step

The Escalation Path Management step includes the Escalation Path view.

Escalation Path View

This view enables you to set up the escalation path information. A set of four pre-configured escalation levels, in order of increasing priority, appear by default. The escalation level priority specifies the order of escalation level lookups.

Figure 2-3 Escalation Path View

Surrounding text describes Figure 2-3 .

Table 2-2 describes the measures in this view:

Table 2-2 Measures in the Escalation Path View

Measure Description

Escalation Level Label

Use this measure to set a relevant label for each escalation level.

Elasticity Escalation Flag

Use this measure to enable a particular escalation level. Select the check box under the relevant escalation level to include the level in the calculation.

Elasticity Escalation Path

Use this measure to set an order for the escalation level lookups. By default, the path is set to 1 through 4 starting from Level 01 to Level 04.

Location Profile Escalation Flag

Use this measure to indicate the escalation levels that will be calculated. Select the check box under the relevant escalation level to include the level in the calculation.

Location Profile Escalation Path

Use this measure to set an order for the profile escalation level lookups.


After you have configured the escalation paths, continue to the Advanced Step.

Advanced Step

The Advanced step enables you to set or override the default values for various parameters. The parameters are organized in multiple views:

Default Anchor and Min/Max Price Parameters View

This view enables you to set up parameters related to historical anchor and minimum/maximum prices.

Figure 2-4 Default Anchor and Min/Max Price Parameters View

Surrounding text describes Figure 2-4 .

Table 2-3 describes the measures in this view:

Table 2-3 Measures in the Default Anchor and Min/Max Price Parameters View

Measure Description Default Value

Default historical anchor price number of time periods to include in calculation

The number of weeks to consider, relative to the history end date, when calculating the anchor price.

104

Default historical anchor price smoothing coefficient

Exponential smoothing coefficient for blending the previous anchor price calculations with the new calculations.

0.99

Default historical maximum price percentile

The percentile at which the historical maximum price will be selected.

0.97

Default historical minimum price percentile

The percentile at which the historical minimum price will be selected.

0.03

Default number of time periods to consider when finding historical min & max prices.

The number of weeks to consider, relative to the history end date, when calculating the minimum and maximum historical prices.

104


After you have defined the anchor and price parameters, continue to the Default Data Transformation Parameters View.

Default Data Transformation Parameters View

This view enables you to set up parameters related to data transformations.

Figure 2-5 Default Data Transformation Parameters View

Surrounding text describes Figure 2-5 .

Table 2-4 describes the measures in this view:

Table 2-4 Measures in the Default Data Transformation Parameters View

Measure Description Default Value

Default Moving Window Length

To calculate the first difference, the price less the moving average of the price is needed. The window length determines the moving averaged prices.

The default value of 18 describes how many weeks to look back and how many weeks to look forward. The moving window length includes the:

  • Past 18 weeks

  • Current week

  • Next 18 weeks

Thus, the moving window length is 37 (18+1+18) weeks.

18

Default Second Difference Exponential Coefficient

After removing seasonality, it may be beneficial to exponentially smooth the second difference of some product/locations. The coefficient determines the degree of smoothing.

1.00


After you have defined the data transformation parameters, continue to the Default HALO Elasticity Parameters View.

Default HALO Elasticity Parameters View

This view enables you to set up parameters related to HALO type elasticities.

Figure 2-6 Default HALO Elasticity Parameters View

Surrounding text describes Figure 2-6 .

Table 2-5 describes the measures in this view:

Table 2-5 Measures in the Default HALO Elasticity Parameters View

Measure Description Default Value

Default HALO - Transformed Price Threshold for Item 1

When calculating the effect of the price change of the second item on the demand of the first item, this value is the transformed price threshold for the first item. If the absolute value of the second difference of log price of the first item exceeds this threshold value, the corresponding data will be excluded from HALO calculation.

0.05

Default HALO - Transformed Price Threshold for Item 2

When calculating the effect of the price change of the second item on the demand of the FIRST item, this value is the transformed price threshold for the second item. If the absolute value of the second difference of log price of the second item is less than or equal to this threshold value, the corresponding data will be excluded from HALO calculation.

0.05

Default HALO - Number of Data Point Threshold

The threshold value for the minimum number of data points required. HALO type cross elasticities that have data points lesser than this threshold value will be filtered out.

10

Default HALO - RAW Effect Difference Threshold

The threshold value for the difference between the HALO type cross elasticities across the two time periods. If this difference exceeds the amount that results from the square root of the threshold value, then the HALO type cross elasticities will be filtered out.

2

Default HALO - RAW Effect Error Ratio Threshold

The threshold value for the HALO cross elasticity and standard error ratio. If a halo type cross elasticity has a value greater than this threshold value multiplied by the standard error for both time periods, then the HALO type cross elasticity will be filtered out.

3

Default HALO - RAW Error Threshold

The standard error threshold value for the HALO type cross elasticities. HALO type cross elasticities with standard error that exceed this threshold value will be filtered out.

0.05

Default HALO - RAW Effect Lower Bound

The lower threshold value for the HALO type RAW cross elasticities. HALO type cross elasticities lower than this threshold value will be filtered out.

-0.5

Default HALO - RAW Effect Upper Bound

The upper threshold value for the HALO type RAW cross elasticities. HALO type cross elasticities higher than this threshold value will be filtered out.

0


After you have defined the HALO elasticity parameters, continue to the Default Historical Data Filtering Parameters View.

Default Historical Data Filtering Parameters View

This view enables you to set up parameters related to historical data filtering.

Figure 2-7 Default Historical Data Filtering Parameters View

Surrounding text describes Figure 2-7 .

Table 2-6 describes the measures in this view:

Table 2-6 Measures in the Default Historical Data Filtering Parameters View

Measure Description Default Value

Default History Start Date

The first date from the historical data to be used in the calculation.

NA

Default History End Date

The last date from the historical data to be used in the calculation.

NA

Default POS Price and Ticket Price Difference % Threshold

The threshold value (in percentage) of the difference between the POS (Point of Sale) price and ticket price. If the difference between the POS price and the ticket price exceeds this threshold value, the data will be filtered out.

Note: POS price is the gross sale amount divided by the gross sales units.

0.05

Default Ticket Price Variation % Threshold

The threshold value (in percentage) for the ticket price variations. If the difference between the minimum and maximum price values exceed this threshold value, the data will be filtered out.

0.05

Default Minimum Average Sales

This is the threshold for the filter that removes item/store combinations with average sales less than the defined threshold.

2

Default Price Variance Coefficient

This is the threshold for the filter that removes item/store combinations with price variance less than average price times said threshold.

0.05

Default High End Sales Curve

Determines what percentage of the cumulative sales should be kept at the end of the lifecycle.

0.8

Default Low End Sales Curve

Determines what percentage of the cumulative sales should be removed from the beginning of the lifecycle.

0.1



Note:

When left blank, values for the History Start Date and History End Date measures default to the start and end dates in the calendar.

After you have defined the historical data filtering parameters, continue to the Default Raw Self-Elasticity Parameters View.

Default Raw Self-Elasticity Parameters View

This view enables you to set up parameters related to raw self-elasticities.

Figure 2-8 Default Raw Self-Elasticity Parameters View

Surrounding text describes Figure 2-8 .

Table 2-7 describes the measures in this view:

Table 2-7 Measures in the Default Raw Self-Elasticity Parameters View

Measure Description Default Value

Default Minimum Data Points

The threshold value for the minimum number of data points required. Items or locations with number of data points lesser than this threshold value are not included in the calculation.

5

Default Raw Self Elasticity Lower Bound

The lower threshold value for the raw self elasticities. Items or locations with raw self elasticities higher than this threshold value are not included in the calculation.

-1.5

Default Raw Self Elasticity Upper Bound

The upper threshold value for the raw self elasticities. Items or locations with raw self elasticities lower than this threshold value are not included in the calculation.

0.5

Minimum Second Difference Price Squared

This is a threshold that ensures that the second difference of the price is not zero.

0.00001

Minimum Elasticity Confidence

Defines the threshold used to determine if the elasticity at a certain level is reliable or if it should be escalated.

1.96

Minimum Completeness Ratio for Profile

This threshold determines if a location profile level is reliable or not. If at least the percentage of locations given by the threshold has reliable elasticity, the location profile is calculated.

0.5


After you have defined the raw self-elasticity parameters, continue to the Default Raw Self-Elasticity Parameters View.

Default Cannibalization Parameters View

This view enables you to set up parameters related to cannibalization.

Figure 2-9 Default Cannibalization Parameters View

Surrounding text describes Figure 2-9 .

Table 2-8 describes the measure in this view:

Table 2-8 Measure in the Default Cannibalization Parameters View

Measure Description Default Value

Cannibalization Coefficient Default

The default value for the cannibalization co-efficient.

0.5


After you have defined the cannibalization parameters, save and commit the Administration workbook and continue to the Maintenance Task.