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Algorithm Settings
Carla Domingos avatar
Written by Carla Domingos
Updated over 2 months ago

This is where you can define the settings for the Algorithm. This will influence the advice and forecast according to your settings.

Yearly Seasonality - The yearly seasonality factor allows you to tweak how much of last year's sales, along with the current trend is taken into account when forecasting.

For example, if the yearly seasonality factor is set 1 then the forecast takes into account only last year's sales (i.e., 100%) when calculating the forecast. If it is set to 0.25 then we take 25% of last year's sales and 75% of the current trend during calculation. This factor can be adjusted according to your needs.

Outlier Filtering - The outlier filtering allows to filter spikes in sales. For instance when you have a promotion that you do not want to be taken into account on the forecast as an increase in sales.

Wholesale - When activating the wholesale setting in your general setting, Optiply's algorithm will be tweaked to a wholesale scenario.
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The following three things are the main changes:

  • Our outlier filtering mechanism will look at demand patterns differently. Sell orders that are unusual for regular normal e-commerce shops, but normal for wholesalers will not be filtered out.

  • A longer sales history will be taken into account, making seasonality forecasting even more accurate.

  • Optiply will not impute demand data. When there is no stock and no sales, we will not assume sales could have happened but assume the data is trustworthy.

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