Actual Decay Rate
The calculated decay rate based on demand history. The Actual Decay Rate is calculated once at the end of each slice, for all parts in Last Time Buy, after the recommended order quantity has been placed and the Last Time Buy Status is Done.
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This field is used by the Last Time Buy Legacy Workflow. It is not referenced or utilized by the Inventory Optimization
Last Time Buy Scenario Workflow.
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View the Formula
where:
Variable | Value |
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n | Number of slices since the Decay Start Date. This number is derived from the Last Time Buy decay rate scheme governing the SKU. The Actual Decay Rate is 0 when the Decay Rate Start Date is the current slice. |
LTBCurSliceNum | The period number of the current slice (the Decay Rate Start Date is 0). |
LTBSumLNUsage | Set to zero at the start of the LTB. |
LTBSumLNUTimesSlice | Set to zero at the start of the LTB. |
For each slice, the following calculation is performed:
LTBSumLNUsage += ln(DemandHistory for slice)
LTBSumLNUTimesSlice += ln(DemandHistory for slice) * LTBCurSliceNum