Policy Record Fields Explanation (DEPRECATED)

Description

Text description of the segment.

Segment

Unique identifier for the segment.

Revenue

Sum of “Revenue Measure” field (selected in model definition) for the segment.

Margin

Sum of “Margin Measure” field (selected in model definition) for the segment.

Volume

Sum of “Volume Measure” field (selected in model definition) for the segment.

#Transactions

Count of Transactions used by the segment.

#Products

Count of unique products in the transactions used by the segment.

#Customers

Count of unique customers in the transactions used by the segment.

Margin %

SUM(“Margin Measure”)/SUM(“Revenue Measure”)

Target Metric (Avg)

SUM(“Optimization Target” * “Revenue Measure”)/ SUM(“Revenue Measure”)

Scoring

Scoring Method Used for Score. The following are valid values:

1. “Fixed Target Percentile”: Used if an explicit “Target Percentile” has been specified in the model definition.

2. “CI/PP”: Competitive Intensity and Product Performance are used to determine the Target Percentile.

3. “CoV”: Coefficient of Variation is used to determine the Target Percentile.

Score

• In case of a “Fixed Target Percentile”, a score is not calculated.

• In case of “CI/PP”, the values of CI and PP range from 1 to 5. If either of them is null, then that value is set to a default value of 3. Score = ((CI + PP – 2)/8.0)*100

• In case of “CoV”, we determine the coefficient of variation, which is defined as Population Standard Deviation of “Optimization Target”/ Mean of “Optimization Target”. The score is then defined as the MIN(100, 100 * Coefficient of Variation). If Coefficient of Variation is null, then Score = 100.

Floor (p)

“Floor Percentile” as set in model definition.

If not set in definition:

• In case of Target Type Margin %, default is set to 30.

• In case of Target Type Discount %, default is set to 10.

Target (p)

“Target Percentile” as set in model definition (i.e., using “Fixed Target Percentile Scoring Method”).

If not set in definition:

• If using “CI/PP” or “CoV” scoring method:

  • In case of Target Type Margin %, Target(p) = Floor(p) + ((Ceiling(p) – Floor(p)) * (Score/100)).

  • In case of Target Type Discount %, Target(p) = Ceiling(p) – ((Ceiling(p) – Floor(p)) * (Score/100)).

Ceiling (p)

“Ceiling Percentile” as set in model definition.

If not set in definition:

• In case of Target Type Margin %, default is set to 90.

• In case of Target Type Discount %, default is set to 70.

Floor

Value corresponding to the Floor (p) of the Target Metric in the segment data (within bounds of Restrictions Company Parameter table).

Target

Value corresponding to the Target (p) of the Target Metric in the segment data (within bounds of Restrictions Company Parameter table).

Ceiling

Value corresponding to the Ceiling (p) of the Target Metric in the segment data (within bounds of Restrictions Company Parameter table).

PriceΔ%

Calculates the Percentage change in Revenue when Target value is used for Target Metric on data in the segment:

• In case of Target Type Margin %:

  • Determine Total Historical Cost using Total Historical Revenue * (1-Historical Margin Percent).

  • Determine New Revenue using Total Historical Revenue/(1-Target Margin %).

  • Calculate Percentage Change = (New Revenue – Total Historical Revenue)/Total Historical Revenue.

• In case of Target Type Discount %:

  • Determine Total Historical Gross Sales using Total Historical Revenue/(1-Historical Discount %).

  • Calculate New Revenue using Total Historical Gross Sales*(1-Target Discount %).

  • Calculate Percentage Change = (New Revenue – Total Historical Revenue)/Total Historical Revenue.

Margin%Δ

Calculates the change in Margin % when Target value is used data in the segment:

• In case of Target Type Margin % or Discount %:

  • Calculate Historical Per Unit Price = Historical Revenue/Historical Volume.

  • Calculate Historical Per Unit Cost = Historical Per Unit Price * (1-Historical Margin %).

  • Calculate New Per Unit Price = Historical Per Unit Price * (1+PriceΔ%).

  • Calculate Target Metric Margin % = (New Per Unit Price - Historical Per Unit Cost)/New Per Unit Price.

  • Calculate Margin%Δ = Target Metric Margin % - Historical Margin %.

Target Metric Δ

Calculated as Target – Historical Target Metric.

Target Metric Δ%

Calculated as Target Metric Δ/Historical Target Metric.

TargetStd

Population Standard Deviation of “Optimization Target”.

t

Tangent Point:

• In case of Target Type Margin %, Tangent Point is MINIMUM of (Mean of “Optimization Target” + Population Standard Deviation of “Optimization Target”) or ((Mean of “Optimization Target + 1)/2).

• In case of Target Type Discount %, Tangent Point is MAXIMUM of (Mean of “Optimization Target” – Population Standard Deviation of “Optimization Target”) or ((Mean of “Optimization Target - 1)/2).

A

Elasticity Factor:

• In case of Target Type Margin %:

  • Elasticity Alpha = (1 – Tangent Point)^2

• In case of Target Type Discount %:

  • Elasticity Alpha = -1

Elasticity Factor (A) = ((Tangent Point - Mean of “Optimization Target”)/ (((Population Standard Deviation of “Optimization Target”)^2) * Elasticity Alpha)).

VolumeΔ% (BE)

Percentage change in volume expected within the Segment.

Calculated as (- PriceΔ%)/(Margin % (from above) + PriceΔ%).

Volume (BE)

New volume expected in the segment.

Calculated as Volume (from above) * (1.0 + VolumeΔ% (BE)).

VolumeΔ (BE)

Volume change expected in the segment.

Calculated as Volume (BE) - Volume (from above).

RevenueΔ (BE)%

Percentage change in revenue expected in the segment. This is sum of changes due to change in volume and change in price.

Calculated as VolumeΔ% (BE) + (PriceΔ% * (1 + VolumeΔ% (BE))).

Revenue (BE)

New Revenue expected in the segment.

Calculated as Revenue (from above) * (1.0 + RevenueΔ% (BE)).

RevenueΔ (BE)

Revenue change expected in the segment.

Calculated as Revenue (BE) - Revenue (from above).