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Fixed and Detailed proportions

Former Member
0 Kudos

Hello Friends

When should one use fixed proportion and detailed proportion?

Under what conditions ?

Please help...

Regards

RK

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi Rakesh,

The selection of proportion whether fixed or detailed depdends upon the

nature of CVC categories.

If you want all your CVCs to get equal values in all the periods during

planning of forecast, then you need to select fixed

If you need different proportational values to be calculated by system

across different period buckets, then you need to choose detailed.

This value needs to be derived from the history depends on the

fluctation of demand

Regards

R. Senthil Mareeswaran.

Former Member
0 Kudos

Well rakesh,

As the name suggests, fixed proportions calculation has a result of a fixed value which will used for all the future periods at the CVC level.Here same value for all the periods.

This is used where the mean value for definate set of periods is considered as base. May be you feel , only sales in some portion of periods in the past will make a reference.These are used where variations are less important..May be sales though out the year has less variations

In detailed proportions, it is calculated per period. Means, reference will be period to period.

May be , you predict that sales in January /2010 is proportional to January/2009 and Feb/2010 is proportional to Feb/2009..

These are used where individual periods have more variations. Mainly used in CPG industry...

Sometimes in the same industry, both calculations are used for different selections...may be based on product categories etc..

Regards,

Umamahesh

Former Member
0 Kudos

Hi,

If you set indicator as Fixed Proportions, the system calculates the same proportional factors for each period.Specifies that the proportional factors are independent of the period.

If you set indicator as Detailed Proportions, the system calculates the proportional factors for each period separately. The system calculates time-dependent proportional factors.

Thanks,

Dipankar