What is it?
Style Arcade has a metric called True Rate of Sale.
This metric calculates the rate of sale when the size is in stock so as not to underestimate a product's true potential - after all, if the size isn’t in stock you can’t sell it!
How is it calculated?
In the example below, this product has been active for 12 weeks and as you can see over that time frame some sizes were sold out. The True Rate of Sale allows you to time slice over this entire time period to assess the unconstrained potential when planning reorders or future range plans.
Table 1:
How does True Rate of Sale handle small data sets?
Small data sets refer to limited units being allocated (to any location) and then selling out very quickly in a small number of weeks.
Sizes that have enough data points are calculated as listed in Table 1, however very small data sets are weighted to ensure the True Rate of Sale, i.e. the demand, is not overstated based on limited data.
Table 2:
How is the True Rate of Sale used to calculate the ideal size curve?
The True Rate of Sale curve looks at the TROS by size as a % mix of the total TROS.