Overlapping Promotions with Zero Adjustment Factor Generates No Lift
Last updated on AUGUST 17, 2016
Applies to:Oracle Retail Demand Forecasting - Version 14.0.1 and later
Information in this document applies to any platform.
When having Causal forecast - Overlapping promotion setup with adjustment factor as '0', the system calculated effect is generated for each variable. However the lift units and baseline are zero in the week where the promo variables are overlapping and no promo lifts are generated for any of the weeks (even in weeks where only one of the variables is active).
The issue can be reproduced with the following steps:
1. Load history data (regular sales and promo sales) and configure at least two (2) promo variables.
2. In Promote--> Promotion Planner Workbook, set the 2 promo variables to be active in history together and also active independently
3. In Promote--> Promotion Planner Workbook, set the 2 promo variables to occur together in forecast horizon and also set the same 2 promo variables to be active independently in forecast horizon
4. In Forecast Administration-->Causal Parameters, set overlapping behavior to 'Adjustable Approach' and set the adjustment factor to '0'
5. Set Forecast Method to Causal at the Final Level
6. Generate Causal Forecast and notice the following:
- System calculated Lift effect in Forecast Approval Workbook is calculated
- Promo lift units not calculated for both the promo variables in weeks where they are overlapping and also in weeks where they are occurring independently
- System Baseline is '0' in the week where the promo variables overlap
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