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Average Per Week (APW) and True Demand
Average Per Week (APW) and True Demand

Average Per Week in Assortment Planning allows

Updated over a week ago

Average per Week shows the average weekly demand on a particular Choice (or a group of SKUs). This metric is also called Rate of Sale in some organizations, and is a helpful metric to be able to estimate projected sales, simply by doing Average per Week x Number of Weeks

Good Weeks

While calculating Average per Week, it is important to have a notion of `Good Weeks`, i.e. weeks a particular size was fully in stock to consider whether or not to include that size for calculation for Average per Week. This can be a painful process without the right tooling, but Toolio automates this calculation.

When calculating Average per Week, Toolio automatically finds the weeks a particular SKU ended with available inventory, and only considers that week as a part of the average if the SKU was in stock. Accordingly, you do not get penalized in your True Demand calculation for the weeks the SKU was not in stock.

Frequently Asked Questions

Can we configure a buffer amount to use for in-stock calculation?

By default, Toolio assumes that an item was out of stock if you had 0 units available for that SKU. However, in some cases, you might want to assume that inventory less than X to be considered out of stock. Examples for this could be as follows:

  • Say you demote or remove from site SKUs that have less than 3 units available

  • Say you don't have a good accuracy on inventory information and want to consider having less than 2 units as out of stock

In all these cases, Toolio can be configured to consider inventory less than the buffer amount to be out of stock for Average per Week calculation.

How does Toolio handle weeks where a size (say XXS) was out of stock?

Toolio first calculates Average per Week on the size level and then aggregates to the choice level. Accordingly, the true demand for out of stock sizes are calculated only on the weeks that they are in-stock and added to the overall demand for choice; hence, your Average per Week calculation will not be effected by sizes being frequently out of stock.

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