Oracle® Retail Analytic Parameter Calculator for Regular Price Optimization User Guide for the RPAS Fusion Client Release 16.0 |
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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:
To access the Administration task, perform the following steps:
Log on to the RPAS Fusion Client. For more information, see Logging On to APC-RPO.
In the APCRPO activity in the taskflow, click the Create New Workbook icon in the Administration task.
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. |
The Setup step includes the Batch Setup view.
This view provides you the ability to enable or disable data processes when the APC-RPO batch is run.
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.
The Escalation Path Management step includes the 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.
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.
The Advanced step enables you to set or override the default values for various parameters. The parameters are organized in multiple views:
This view enables you to set up parameters related to historical anchor and minimum/maximum prices.
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.
This view enables you to set up parameters related to data transformations.
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:
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.
This view enables you to set up parameters related to HALO type elasticities.
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.
This view enables you to set up parameters related to historical data filtering.
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.
This view enables you to set up parameters related to raw self-elasticities.
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.
This view enables you to set up parameters related to cannibalization.
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.