ROS calculations are a key component of AP demand forecasting. Please read below for a summary of how ROS values are calculated by Toolio.

Rate of Sale Model is used calculate rate of Gross Sales Units per week per store. You can define the time frame and filters (choices) that will be used so the system makes the calculation based on these defined criterion.

Please note that there are 2 distinct Choice attributes which correspond to ROS:

Type: System

This is the output of the ROS Model which is calculated on Offering Level per cluster and then choice level average is used for planning purposes. This output represents the average sales per location, per week based on the historic data from one or more choices. This means that while a single average number may be presented in the “Calculated ROS” attribute, there is likely a range of performances across the mix of products and locations selected for the ROS model.

You can click into the calculated ROS cell to view the calculated ROS distribution and the rankings at the cluster level. You can read more about Calculated ROS Ranks here.

Type: Input

User can adjust the Calculated ROS as they like. In the presence of a Calculated ROS, system uses the weighted distribution among the clusters and adjust the ROS according to the user input among the clusters. If no ROS Model was defined, then, each offering gets the same defined value for the defined Adjusted ROS. Please note that, Adjusted ROS always overrides the Calculated ROS for Forecasting calculations.

You can read more about the full Choice Planning workflow + details around how the ROS values are utilized in conjuction with Sales Curves, Location Curves, and Cluster Groups in the full Choice Planning guide here.

Toolio can automatically consider Good Weeks during the ROS calculation, filtering out any historic 'Bad Weeks' with insufficient inventory from being considered in your ROS calculations. A 'Good Week' is defined as any week where inventory was available to sell, i.e. any week where BOP Units+Receipt Units+Transfer Units > 0. Consequently, a 'Bad week' is defined as any week where no inventory was available to sell, i.e. BOP Units+Receipt Units+Transfer Units = 0. Please note that this evaluation takes place at the Location x Week x Choice granularity during ROS Calculation

For example, let's say your ROS Calculation is configured to include 10 choices and utilizes a 52 week historical time frame. The system will evaluate and exclude any Bad Weeks at the Location x Week x Choice level during ROS calculation. Let's say for a given choice and location combination, 5 weeks in the 52 week time frame were deemed as Bad Weeks, then those weeks will be excluded from the ROS calculation entirely - meaning no sales will be considered from those weeks in the numerator, and the total Good Weeks for that 52 week period is reduced to only 47 in the denominator.

Thus, the ROS calculation for that choice x location would be:

In a case where Good Weeks are not enabled, the calculation would instead be:

Please note that this behavior is universally configured - meaning that Good Weeks are always considered when enabled, or never considered when disabled.