Monitoring and Analysis
On-Shelf Availability has two separate detection steps. Depending on the scenario, perform one of the following two steps:
Monitoring for operative scenario: Used for detecting potential out-of-shelf situations at the current time.
NoteOnly products with the following characteristics are monitored:
An estimation is available for the product.
The stock of the product is greater than zero. If the product is out-of-stock, it would be not useful to monitor it in respect to out-of-shelf situations.
End of the note.Analysis for Analytical scenario: Used for creating calculation results for reporting.
The calculations are performed for all product locations without any filtering (as for regular monitoring) and for a defined analytical horizon.
NoteIn the analysis step, the stock information is not considered.
End of the note.
Lost Sales
The lost sales calculation is one major feature of the monitoring step and the analysis step. Lost sales are sales that could not be realized during a certain time period due to insufficient availability of a product in a designated area of a store.
The lost sales calculation includes the calculation of the following key figures:
Lost transactions: Number of sales transactions that are lost during a certain time period due to insufficient availability of a product in a designated area of a store.
Lost quantity: Quantity of products that is lost during a certain time period due to insufficient availability of a product in a designated area of a store.
The lost quantity is calculated using the formula “lost transactions x average quantity per transaction”.
Lost revenue (lost turnover): Revenue that is lost during a certain time period due to insufficient availability of a product in a designated area of a store.
The lost revenue is calculated using the formula “lost transactions x average quantity per transaction x current product price”. The lost revenue is calculated in the currency that is assigned to the last sales transaction before the alert.
The parameters used in the formulas have the following meanings:
Parameter | Meaning |
|---|---|
Detection time (current time) | The time of the last store transaction. This parameter is used only in the monitoring step to calculate lost sales up to the detection time. |
Actual product price | Product price at the last transaction before the alert. |
Average quantity per transaction | Average quantity per sales transaction in the monitored or analyzed time period. |
In the monitoring step, you can switch the calculation of lost sales on or off. In the analysis step, lost sales are always calculated because of the non-critical time slot of the analysis execution.