possible_markdowns: possible_markdowns

In inventorize: Inventory Analytics, Pricing and Markdowns

possible_markdowns

Description

a markdown model This is a markdown model proposed in Walker, John. "A model for determining price markdowns of seasonal merchandise." Journal of Product & Brand Management (1999), the idea that it is possible for seasonal merchandise to forecast how much for a specific product can be left at the end of the season. based on the sales rate in the periods of the selling season. for example, if a seasonal shirt initial buying quantity is 500, during the the first two weeks we sold 100 and the season for this shirt is 6 weeks, then it is possible to forecast for a one time shot product how much is expected to be left with at the end of the season (at the end of the 6 weeks), the function applies the algorithm in walker (1999), the returning value is a classification of the item if it is a slow moving or a regular item. also the possible markdowns that can be applied. (only markdowns where there is a economic viability) and this can be a dynamic markdown process where the process can be repeated every week, preferably when the product changes its status from Regular to slow moving. if the markdown recommendation is for example 0.9 then it means that the new price is 90

Usage

possible_markdowns(
  begining_inventory,
  weeks,
  current_week,
  inventory_at_week,
  expected_at_season_end,
  plot = TRUE
)

Arguments

begining_inventory,	inventory at the beginning of the season before selling.
weeks,	number of weeks in the season.
current_week,	the end of the current week.
inventory_at_week,	inventory at the end of the current week.
expected_at_season_end,	expected inventory left for salvage or writing off at the end of the season, if the forecast is below it, then it becomes a regular item if the forecast is higher than expected at season end then it becomes a slow moving item.
plot	Default is false,if true, a plot is generated

Value

a dataframe that contains all tthe possible economically viable markdowns.

Author(s)

"haytham omar email: <[e-mail]>"

Examples

possible_markdowns(begining_inventory=1000,weeks=16,
current_week=2,inventory_at_week=825,expected_at_season_end=150,plot=TRUE)

inventorize documentation built on June 1, 2022, 1:07 a.m.