SKU rating question

sickless

New member
Joined
Mar 16, 2019
Messages
1
For example I have collected data for a full year including:
1) Quantity sold
2) Gross Trade Sales (Quantity * Base Selling Price)
3) Net Trade Sales (GTS * (1- sum of discounts))
4) Gross Profit (NTS - COGS)
All of this data is aggregated on SKU level. What I would like to do is taking into account Quantity & NTS & Gross Profit values calculate a rating for each SKU showing it's efficiency. I'm not that good at maths, so some of my questions might seem pretty simple for you, but still:
1) Do I really need to include Qty into my model since it's already included in NTS?
2) I've been using following formula to calculate a rating for each SKU and further distribute it among preset thresholds for each rating starting from 1 to 5:
(100 - sqrt( ((100 - NTS% in GTS)^2 + (100 - GP% in NTS)^2)/2 )*100
Is it a possible/accurate way to distribute all SKU's based on how efficiently they're sold and how profitable they are? Are there any other models/formulas you can advise to reach my goal? Thanks in advance!
 

mmm4444bot

Super Moderator
Staff member
Joined
Oct 6, 2005
Messages
10,250
Note for membership: These questions have been posted at stackoverflow.
\[\;\]
 
Top