Exceptional Sales Overview

The system must identify and adjust exceptional sales prior to demand being calculated. Exceptional sales are one time sales events that unrealistically distort demand. You can flag exceptional sales by editing the invoice and changing the detail status. This calculation excludes that sale from the total of units sold in the demand history period. The demand hit definition affects how the system calculates exceptional sales and usage for items split among multiple orders. More exceptional sales are possible when calculating hits on a per-sales order basis, than when set to the generation or line item level.

For example, usually you sell Product A twice a year. However, a contractor engaged in a major restoration project purchases twenty of Product A in one day. By flagging a sale as exceptional, you prevent those quantities from being used in the demand forecast calculation. If you do not flag a sale as exception, the system uses the quantity as a normal sale and this can distort your demand results.

Exceptional sales can be flagged by:

You can limit the effect on demand of the largest single sale during the demand history period by setting the Exceptional Sales Percentage in the Inventory sub-screen of Product Maintenance.

Exceptional Sales on the Order Service Level Report

You can determine how the Order Service Level Report handles exceptional sales as well. This report is designed to give a statistical picture of how successful you are in completing your orders by the required date.

As exceptional sales can occur due to the unusual circumstances, you might want to prevent these sales from displaying on the report. However, you may want to see how successful you are in handling sales of above-average quantity. Use the Exceptional Sales field on the report to decide which way to run the report.

Exceptional Sales on the Product Fill Rate Report

You can determine how the Product Fill Rate Report handles exceptional sales as well. This report is designed to give a statistical picture of how successful you are in sending your customers the products they requested by the required date.

As exceptional sales can occur due to the unusual circumstances, you might want to prevent these sales from displaying on the report. However, you may want to see how successful you are in handling sales of above-average quantity. Use the Exceptional Sales field on the report to decide which way to run the report.

See Also:

Forecasting Overview

How the System Filters Demand for Forecasting