This page shows if history of the Product – Location follows a normal distribution. It helps you understand the distribution of historic demand, where occurrences represent the number of periods with a particular deviation vs the mean.
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.
Statistics
| Parameters | Values |
| Mean | Displays the system calculated mean value of pure history for the selected product–customer combination. |
| Standard Deviation | Displays the system calculated value of the dispersed data in relation to the mean for the selected product–customer combination. |
| C–Var (Mean) | Displays the C–Var value, which is a standard deviation / mean of pure history for the product and customer combination you select. |
| C–Var (Trend) | Displays the system calculated value for the product and customer combination. This value is calculated based on C–Var, which is Standard Error / Mean of the Trendline. |
Distribution Analysis
This grid displays the history data distribution when compared to a normal distribution. For example, the Distribution Analysis could show that a particular product combination has a certain number of periods of history. Additionally, it could show the mean value per period, and the standard deviation.
Note: Use legends to view information for any specific parameter. Select or deselect a legend to show or hide its details in the chart.
Additional information
If the actual values are more closely spread around the mean than a normal distribution, the safety stocks values might be overstated. While, if the actual values were more evenly spread around, the safety stocks values might be understated.
Notes:
- The area chart is the normal distribution curve.
- The purple bars are the actual distribution for this Location – Item.
- The closeness of fit can be used to assess the appropriateness of using dynamic safety stocks.
