BY Variables
True or False: Category Sales Plans include SFF?
False: SFF lifts are only included in Receipt Plan Variables
How does Spread Factor affect an allocation?
Spread factor influences the depth we give each store. The Higher the Spread factor, the more depth to top doors, the lower the spread factor the flatter the allocation.
What does GMV stand for?
Gross Merchandise Value (GMV) is a metric indicating the total amount a customer pays for merchandise (Marketplace, Hybrid, Wholesale, Drop Ship). It is calculated as the net sales from JWN owned inventory as well as merchandise sold under alternative partnership models and excludes any fees or expenses related to the sales, such as delivery costs, marketing, and returns processing.
How do you calculate Sales U?
Sales U = Gross Sales U – Returns U
True or False: Receipt plans do not include RP.
FALSE: They include RP and NRP.
Explain how Supplier Sales are applied in calculating need when using Allocation SR or SC Variables
SR or SC Variables incorporate supplier selling as a % to total of the Category Receipt or Category Sales plans. It also looks at how important the supplier is to that location.
What are the benefits of using Methods?
Saves time.
What is BOP?
Beginning of Period (BOP): Inventory value at the start of a time period, including transit.
Difference between SP and OP?
Snap Plan (done week 1 of every month) vs Original Plan (done 6 months in advance.)
True or False: Location Receipt Plans are driven by current and forward month regular and clearance sales forecasts.
FALSE: Receipts are driven by current and forward month REGULAR PRICE sales forecasts.
What is Flow Variable used for?
When an item has multiple deliveries.
What is Standard Deviation?
TELLS US HOW SPREAD-OUT THE DATA IS.
A WAY TO MEASURE DATA
MEASURING THE AMOUNT OF VARIATION IN DATA
What is MMROI?
Merch Margin Return On Investment (MMROI): Measure of profitability to the company that accounts for turn and merch margin.
Describe relationship between sales, rcpts, and BOP?
Plans always start with sales. BOP is the inventory needed to drive the sales for the current month and receipts are the difference between Next Month BOP U- Current month BOP U- Current Month Sales Plan.
What week are Location Plans updated?
Location publishes Plans on the 4th Friday of every month.
Explain how need is calculated when using Anchor Brand Variable
Need is derived from the Max ZScore which is the highest of 3 data collects: Supplier Sales, Category Plans and Cluster Grade.
IT’S A MEASURE OF HOW MANY STANDARD DEVIATIONS BELOW OR ABOVE THE MEAN A DATA POINT IS
Z-SCORE GIVES YOU AN IDEA OF HOW FAR FROM THE MEAN A STORE IS
What is Turn?
An estimate of the number of times merchandise inventory is completely replenished in a specific period of time, usually a fiscal year. Calculation: merchandise sales amount / average inventory amount (at retail).
What is Average Inventory and how is different than EOH?
EOH (Ending on Hand) is a snapshot of inventory owned at a moment in time.
Avg Inv is an average of inventory over time. Calculation: (BOH+EOH)/(# of periods+1)
Explain how need is calculated using Supplier Ownership Blend Variable
SO Blend Variable blends 3 ZScores: Supplier Sales, Supplier EOH+In Transit+8wk OO, and Category BOP Plan.
What is the calculation for Spread Factor?
Standard Deviation/Average
What is the definition of Demand?
The capture of a customer request to purchase an inventoried item or non-inventoried item/service, regardless of whether fulfillment of that item or service ultimately occurs.
What is the Calculation for Merch Margin (MM)?
Merch Margin = Gross Margin + Vendor Funds C + Invoice Payment Terms C – MOS C – Shrink C
What does DCAQ stands for?
DCAQ stands for Data Collect Allocated Quantity