This page provides the Historic Cumulative Distribution Analysis of the Product — Location by comparing the Expected Normal and Actual Distribution. If the actual distribution isn't S-Curve, it indicates that the demand is highly variable and the inventory policy should be set to Fixed Quantity.
Before you start
Use the right-hand context selector dropdown to select a product and location combination.
Parameters
Expected Normal Distribution
The above graph shows the cumulative distribution of the selected history for a Product - Location. If the history follows the pattern of a normal distribution, cumulative distribution graph will be a S-Curve.
Actual Distribution
If the actual distribution isn't a S-Curve, it indicates that the demand is highly variable and the inventory policy should be set to Fixed Quantity.
Notes:
- For highly variable products, it can be difficult to determine safety stock levels.
- It can be useful to set a Fixed Quantity inventory policy with a target inventory level equal to an x% frequency from history.
