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 shows that the demand is highly variable and the inventory policy should be set to Fixed Quantity.
Before you start
Use the context selectors at the top-right to select a location and product combination. Additionally, you can manually enter the required values using the search function.
Use the Product Filter field to filter on a specific product.
Expected Normal Distribution
The graph shows the cumulative distribution of the selected history for a product and location combination. 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 shows 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.
