🗓️ Adjusting History Length for ABC Classification
The History Length setting controls the number of days of sales history Optiply uses to calculate your products' ABC Classification (e.g., A-movers, B-movers). By adjusting this value, you can ensure the classification accurately reflects recent or seasonal performance.
Purpose of History Length
The ABC Classification system relies on analysing past sales to categorise products by their contribution to your revenue or volume. The History Length defines the duration of that sales analysis:
Shorter Length (e.g., 90 days): Focuses the classification primarily on recent sales performance.
Longer Length (e.g., 365 days): Incorporates annual patterns, making the classification more stable and resistant to short-term spikes.
You may choose to adjust this value to suit your business needs, such as ensuring that sales from the same season last year are included in the calculation.
Boundary Limits
The History Length can be set within the following boundaries:
Minimum: 30 days
Maximum: 365 days
How to Find and Change the History Length
Follow these steps to access and adjust the History Length setting:
Go to Settings: Navigate to Settings in your Optiply main menu.
Locate Classification: Under the settings menu, find and select the A.B.C. Classification section.
Access Advanced Settings: Within the classification options, select Advanced Settings.
Find History Length: Locate the History length input field.
Enter Value: Enter your desired number of days (e.g., 180 for six months, 365 for a full year).
Save Changes: Click the Save button at the top of the page to finalise your settings.
❓ Frequently Asked Questions (FAQs)
Why is the minimum History Length 30 days?
A minimum of 30 days ensures that the ABC classification calculation has a reliable, stable period of sales data to analyse. Using less than 30 days would make the classification too volatile based on daily fluctuations.
If I change the History Length, how soon does the ABC classification update?
Once you save the new History Length, Optiply's system will typically update the ABC classification for all products during the next scheduled batch processing cycle (often overnight or within a few hours).
What should I set the History Length to if my products are highly seasonal?
For highly seasonal products, setting the History Length to 365 days is recommended. This ensures that the calculation includes the corresponding peak and trough seasons from the previous year, providing a more stable and accurate annual classification.
Does History Length affect the short-term demand forecast?
No. The History Length setting specifically impacts the long-term ABC Classification. It does not directly affect the short-term demand forecast that Optiply uses to calculate your next purchase order quantity.