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The Portfolio Optimization Type creation initiates four types of aggregation process: Data Aggregation and Portfolio Aggregation. These aggregation processes are prerequisites for creating a scenario. Only when both the aggregations are successfully complete, can the user proceed with scenario creation.
At first, these aggregations will need to be manually initiated for the hierarchy combination scope selected for portfolio optimization type creation. From the next time onwards, these aggregations will start automatically.
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Data Aggregation - This process aggregates the data to prepare for the scenario optimization.
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Portfolio Aggregation - This process takes into consideration the Portfolio Optimization Type setting and aggregates the data, so when the scenario runs, the data is preaggregated to run the scenario faster. In the case of any system issue, if the aggregation is not initiated, the system will prompt a message and the user can initiate it using the link available on the tile.
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Plan Aggregation - Once the portfolio aggregation is complete, the plan aggregation will initiate. This action will aggregate the plan data.
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Forecast Plan Aggregation - This aggregation is initiated once the plan aggregation is completed.
Note
If data aggregation has not been performed previously for the selected hierarchy type, it will not start automatically. The user must initiate it by selecting the Start Aggregation link on the tile.
Note
If the Portfolio Optimization is configured for Plan and Forecast data usage, then only the Plan and Forecast aggregation will process.
The status on the tile stays inactive until any of the selected scenario result is approved for sending to any of the linked application. Once the result is approved, the tile status will change to Active.
You can also delete the Portfolio Optimization Type using the Delete action. Select the Type name from the drop-down and click Delete. Any active Portfolio Optimization Types cannot be deleted.
Create Scenario
For each Portfolio Optimization Type, the user can create and optimize scenarios. The Create Scenario step defines the product and location positions and parameters for optimization. The typical user for creating scenarios is either a financial planning manager or a planner. The user can create as many scenarios for a single Portfolio Optimization Type as required by the business.
Steps to create a scenario:
1. Select the Portfolio Optimization Type tile desired to create a Scenario. When you select a tile, the Scenario Creation section is displayed. The Create Scenario section is enabled when the two aggregations of the selected Portfolio Optimization Type are successfully
| Output | Description |
|---|---|
| Location Scope | Displays the location scope selected for the scenario creation. |
| Last Year Sales | Displays the sales amount for the last year for the product and location. The sales amount can be net or gross, depending on the sales measure selected for the Portfolio Optimization Type. |
| Last Year Sales Share % | Displays the percentage of last year sales share across the scope. |
| Historical Sales Growth % | Displays the percentage difference (that is, growth) between the simulated sales and last year sales for each product and location. |
| Sales | Displays the simulated sales amount based on the redistribution and historical sales growth and LY sales distribution. |
| Sales Share % | Displays the percentage of simulated sales share across the scope. |
| Sales var to LY % | Displays the sales growth percentage against the last year sales. |
| Sharpe Sales % | Displays the normalized sales growth based on the ratio between the sales growth percent and the sales growth standard deviation. |
| Change in Sales % | Display the difference between last year sales share percent and the simulated sales share percent. |
| Portfolio Growth % | Displays the percent growth across the portfolio based on the historical sales and simulated sales. |
| Portfolio Risk % | Displays the percent risk across portfolios based on the simulated sales |
| Balance Score | Displays the balanced score of Portfolio Growth and Risk. |
| Risk Rank | Displays the lowest risk rank across the output. |
| Growth Rank | Displays the highest growth rank across the output. |
| Balance Rank | Displays the lowest balance rank across the output |
The results page also presents the Sales Growth correlation matrix which allows user to understand the linear relation & magnitude of relationship between two products.
This table will be displayed below the result table. See image below.
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Scenario 2232 - Recommendations
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In this guide
- Guide: AI Foundation User Guide
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