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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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1 Introduction

Oracle Retail Analytic Parameter Calculator for Regular Price Optimization (APC-RPO) is an analytic application that enables you to generate price elasticities that are necessary for the Oracle Retail Regular Price Optimization application. Price elasticities include self elasticities, HALO cross elasticities, and cannibalization cross elasticities.

This document introduces you to APC-RPO and describes how you can use the application. It also describes the views and measures set up in the application. It includes the following chapters:

About Regular Price Optimization

Oracle Retail Regular Price Optimization (RPO) enables users to optimize item prices and reach a desired goals, such as gross margin, revenue, and so on. To provide optimal results, the application requires item self elasticities, HALO cross elasticities, and cannibalization cross elasticities as inputs. The APC-RPO application is designed to calculate and provide information on the elasticities to the RPO application.

Getting Started with APC-RPO

The APC-RPO application includes the following tasks that enable you to set up parameters and, after the elasticities are calculated, review the calculated results:

  • Administration Task

  • Maintenance Task

  • Analysis and Approval Task

The APC-RPO application provides the following business workflow:

  1. Access the Administration task to set up the default parameters and threshold values. For more information on the measures and views in the Administration task, see Administration Task.

  2. Access the Maintenance task to override the default parameters and threshold values at a specific item and location (price zone) intersection. For more information on the measures and views in the Maintenance task, see Maintenance Task.

  3. After all the parameters are set up, the APC-RPO batch program is run. This batch program includes a sequence of scripts that take the parameters you set up as inputs to calculate the price elasticities. For more information on the batch program, refer to the Oracle Retail Analytic Parameter Calculator for Regular Price Optimization Implementation Guide.

  4. After the batch program is complete, all information on price elasticities is made available through the measures included in the Analysis and Approval task. Access the Analysis and Approval task to review the statistics of data filtering, generated price elasticities, and the resolved elasticities at the lowest level. You can then adjust and approve the price elasticities. For more information on the measures and views in the Analysis and Approval task, see Analysis and Approval Task.


Note:

Only approved elasticities are used in the escalations export file.

Accessing APC-RPO

APC-RPO is an Oracle Retail Predictive Application Server (RPAS)-based application. The APC-RPO solution is installed on an RPAS Server. To access the application, you must log on to one of the following RPAS Clients:

  • RPAS Fusion Client – This document describes how you can access and use APC-RPO from the RPAS Fusion Client.

  • RPAS Classic Client – For more information on accessing and using APC-RPO from the RPAS Classic Client, refer to the Oracle Retail Analytic Parameter Calculator for Regular Price Optimization User Guide for the Classic Client.

This section highlights the common tasks of logging on to a solution, opening an existing workbook, and creating new workbooks. It includes the following topics:


Note:

In addition to the APC-RPO documentation, ensure that you also refer to the RPAS documentation for specific information on various base RPAS features.

Logging On to APC-RPO

To log on to the APC-RPO application using the RPAS Fusion Client:

  1. In the Address bar of a supported web browser, enter the Fusion Client URL, and press Enter. The Fusion Client Login page is displayed.

    Figure 1-1 RPAS Fusion Client Login Page

    Surrounding text describes Figure 1-1 .
  2. On the Login page, enter the user name and password set up for APC-RPO, and then select the APC-RPO domain from the Profile drop-down list.

  3. Click Login. The window refreshes and the RPAS Fusion Client home screen is displayed with the APC-RPO taskflow displayed in the left navigation pane.

    Figure 1-2 RPAS Fusion Client Home Screen

    Surrounding text describes Figure 1-2 .

Opening an Existing Workbook

After you log on to the application, a taskflow pane is displayed that enables you to navigate through the activities and tasks associated with your user account.

To open an existing workbook, perform the following steps:

  1. On the taskflow pane, click the Show List of Workbooks icon next to the task or step you want.

    Figure 1-3 APC-RPO Taskflow Pane

    Surrounding text describes Figure 1-3 .

    The Open Workbook window is displayed.

    Figure 1-4 Open Workbook Window

    Surrounding text describes Figure 1-4 .
  2. Select the workbook you want, and click Open Workbook.

Creating a New Workbook

To create a new workbook, click the Create New Workbook icon in the taskflow next to the task or step you want.

Figure 1-5 APC-RPO Taskflow Pane

Surrounding text describes Figure 1-5 .

If you selected Administration from the list, the Administration workbook is displayed directly. When you select Maintenance or Analysis and Approval from the list, a workbook wizard is displayed. This workbook wizard enables you to select and view specific (or all) item and price zone combination. For more information on opening a specific APC-RPO workbook, refer to the relevant chapter in this guide.


Note:

For more information on the other tabs that appear in the New dialog box, refer to the Oracle Retail Predictive Application Server documentation.

Permissible File Names

When saving a workbook (or saving a copy using the Save As command), there are restrictions on the length of the file name and the characters that can be used,

  • The file name can be a maximum of 32 characters.

  • The filename can contain the following standard characters:

    • a - z

    • A - Z

    • 0 - 9

  • The filename can contain the following special characters:

    • .

    • |

    • _

    • -

    • /

    • $

    • &

    • spaces

Any file name not meeting these conditions results in an error message.

APC-RPO Concepts

This section highlights some of the commonly used analytical terms in the application and through this guide. It includes the following:

Advanced Parameter Calculator (APC)

Several Oracle Retail planning applications include an analytic APC module or integrate with a related APC application (such as APC-RPO). APC modules or applications enables users to calculate the necessary parameters required by an Oracle Retail planning application before hand.

Cannibalization

A measure of the amount in sales of a product that can replace the sales of another product.

Cross Elasticity

The effect on the demand of a product because of a change in the price for a different product.

Elasticity

The effect on the demand of a product because of change in the price for the same product.

First Differences

First differences are calculated based on the difference of logarithms of gross sales units and the relevant average logarithm of gross sales units for a specific item/location. The same transformation is applied to ticket prices. First Differences are part of an intermediate step in the data filtering process.

HALO

The measure of the amount in sales of a product that can enhance the sales of another product.

Raw Elasticity

In APC-RPO, raw elasticities are self elasticities at an intermediate stage of processing. It is calculated from the pre-processed filtered price and sales information. It represents all the items in a price zone.

Regularized Elasticity

In APC-RPO, a regularized elasticity is a raw elasticity that has been further processed and smoothed.

Second Differences

Second differences are calculated based on the difference between the first differences (logarithm of gross sales units and the logarithm of ticket prices) and the relevant averages for a specific department/week. Similar to first differences, the second differences are part of an intermediate step in the data filtering process.

Self Elasticity

This term is identical to "Elasticity." It is used to differentiate the term Elasticity from Cross Elasticity.