Item Suggestion is a tool to help retailers decide which items are suitable for LS Forecast. The whole process can be divided into three phases.
- In the Selection Phase, the tool selects items based on predefined filters and thresholds.
- In the Rating Phase, the tool performs an analysis on the selected items, where it calculates various metrics and ratings. The tool offers a number of metrics that are good measurements of sales and profits. It is possible to apply different weights on the metrics as well as deactivate any metric. The metric's weight indicates how important it is for the business. The more important the metrics, the higher weights they should have.
To normalize all the metrics and present them using a single common unit, the tool implements rating logic. An item can receive either low, medium, or high rating for a particular metric. The ratings are converted to points and then weighted scores.
The final output is the Total Score and the Total Rating for each item. At the end of this phase, the items will be classified into two groups of good and bad candidates for LS Forecast. This serves as a guideline for you to choose the suitable LS Forecast items.
- In the Activation Phase, the tool provides an easy way to activate a batch of items to use LS Forecast as the Replen. Calculation Method and to set all required replenishment parameters.
The setup for this functionality is described in details in Basic Item Suggestion Setup.