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The data points at a style level might not be enough to give an accurate predictions.
Also, there may be edge cases in the analysis period.
For Ex- XXL or XXS had sales higher than usual in the analysis period. Thus, the prediction for that style will be higher for these edge styles, which don’t have a demand in general.
Thus taking an average at an AG level, will give more accurate sense of split between customers.
Q: Returns are removed currently from the sales file, so while calculation it is not the effective sales that are being analyzed specially incase of online where returns % is as high as 40% ?
A: If we remove the sales which will eventually be returned, we are removing that demand which was initially created at the juncture when the customer made the decision of purchase. According to MS Pro it is not the right way of looking at things Returns can happen because of multiple reasons and this this should be analyzed separately against separate KPIs like size, fit, color, etc.
Distribution
Q: Tool is quite relevant for brands that have their own EBOs as they can use it for distribution, as they will have complete control on what stocks to send to stores, and if they are doing it manually.
A: Yes, for one’s own store control on execution is 100% but even for external partners, IRIS is useful to keep a check and validate the allocations and replenishment. It has been helpful in the past to highlight gaps and course correct the stock situation even at partner stores of brands on IRIS.
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A: Tool will suggests replacements. If the style is out of stock even in the warehouse tool will suggest the next closest replacement by dropping an attribute or rolling up one as per the set hierarchy.
IST (Inter Store Transfer)
Q: What is the ideal criteria for top seller cutoff in IST ?
A: The ideal benchmark for top seller is 25-30%, but if you want to consider more number of styles for IST you can run on 60% and if every style needs to be considered it should be ran on 100% benchmark.
Regional Utilization
Q: Is depth increment automatically readjustablere-adjustable?
A: If you are doing weekly run then you can turn on the depth increment flag otherwise you can increase cover days to get more depth of sku.
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