The Replenishment Calendar is used in combination with the Sales Profile and the Replen. Forward Sales Profile.
The calculation of Average Daily Sales uses the historical sales data which is defined in the Sales Profile for the item. The result of this calculation is the historical average sales which will be used as forecast for future sales.
The Forward Sales Profile can improve this calculation by considering sales patterns in previous periods. The Forward Sales Profile lets the user define a comparison period. For this comparison period, the system calculates the averages sales before the comparison date and the average sales after the comparison date. The time horizons for the periods before and after the comparison date can be set up. The resulting two averages are compared and the Forward Factor is calculated from those values.
The Forward Factor describes a change (increase/decrease) in the sales pattern on the comparison date. The reason for this change could be a seasonal selling pattern or a trend.
The Forward Factor is applied to today's forecast - assuming that the seasonal pattern will appear again in the current period.
If the Forward Sales Profile needs to compare events in the past and present which do not appear on the same calendar date ( Easter, for example), the Replenishment Calendar can be used.
When the field Use Replenishment Calendar is selected in the Forward Sales Profile, the system applies the Back Period Calc. Formula from today’s date, and if the date is found in the Day column of the Replenishment Calendar, the date from Last Year’s Day will be used to calculate the sold quantity that goes into the average daily sales.
In the calendar, the user can set up the projection of days between years. This approach is used to map sales events which have a moving date in the year, such as Easter.
Example:
The system needs to calculate the sales trend of item number 40020, which has been set to use the 6W4W Replen. Forw Sales Profile. The 6W4W Forward Sales Profile uses the Replenishment Calendar. The Prior Period Date Formula field is empty, so the previous year will be considered in the Forward Sales Profile calculation.
Today’s date is 15.08.2007.
The system applies the Back Period Calc. Formula, which is 6W, to 04.07.2007 to find the dates it needs to inspect to find the sales of last year. This gives as the result the dates from 04.07.2007 to 15.08.2007. The first 4 days from 04.07.2007 to 30.03.2007 are represented in the Replenishment Calendar so they will be replaced with the dates in the Replenishment Calendar. The last year's sales dates for the remaining dates will be calculated by using the Prior Period Date Formulaonly.
See Also