This page provides a summary of demand classification for all products. It enables you to classify products based upon the nature of their demand history.
Before you start
Use the context selector at the top-right to select a product. Additionally, you can manually enter the required value using the search function.
Demand Classification Summary
Demand classification is a two-step process.
- Classifications are first based on the items that best fit the statistical forecast method.
- If the best fit forecast method isn't an intermittent, trend, or trend seasonal method, they're classified as "Other".
- Items classified as "Other" are categorized further based on an analysis of their Average Demand Interval (ADI) of Coefficient of Variability (C–Var).
Use the Product Filter field to filter on a specific product.
The parameters are displayed in the Effective Parameters card, but can be adjusted using the fields in the Edit Parameters card.
| Parameter | Value |
| Average Demand Interval Cut-Off | Enter a numeric value to set a parameter threshold for demand classification of a product. |
| C–Var Cut-Off | Enter a numeric value to set a coefficient of variability threshold for demand classification. |
The Demand Classification – All Products chart provides users with a breakdown of all products of the classified demand. The demand classification for a product is categorized into Smooth, Intermittent, Erratic, and Lumpy.
| Parameter | Description |
| Total History (U) | Displays total history in units. |
| Total History (R) | Displays total history in revenue. |
| Classification Count | Classification count for each category. |
The C-Var – All Products chart shows statistical scoring of standard deviation, CV, and ADI.
The third chart displays the calculated demand forecast for the selected product. The context selectors at the bottom of this chart show the selected product and customer combination.
| Parameter | Description |
| Chained History (U) | Displays the sum of the Selected History (U) and Inherited History (U) values. |
| Mean (U) | Displays the mean value of pure history in units. |
| Trend (U) | Displays the C-Var value defined as standard error divided by the mean of the trendline in units. |
Classification Details by Product
The Classification Details table highlights all products, which are captured in the above graph on a row-by-row basis. It states the product's calculated demand classification and effective demand classification. The table also lists statistical scoring of standard deviation, CV, and ADI.
