What is reference factor in SAP CA-RT-AP - SAP Assortment Planning?

SAP Term: reference factor

• Component: CA-RT-AP

• Component Name: SAP Assortment Planning

• Description: A numerical value assigned to the combination of a specific placeholder product and a specific reference product. The reference factor measures the expected sales performance of the placeholder product as a multiple of the average past sales of the reference product. Example: A placeholder product that is expected to behave similarly to the reference product would have a reference factor of 1.0. A placeholder product that is expected to perform 20% better than the reference product would have a reference factor of 1.2.

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• Key Concepts: 
  Reference factor is a feature of SAP Assortment Planning (CA-RT-AP) that allows users to adjust the quantity of an item in an assortment plan based on a reference factor. This reference factor can be based on a variety of factors, such as sales history, customer preferences, or market trends. The reference factor can be used to adjust the quantity of an item in an assortment plan to ensure that the assortment plan is optimized for the desired outcome.
  
  How to use it: 
  To use the reference factor feature in SAP Assortment Planning, users must first define the reference factor they wish to use. This can be done by selecting a field from the available fields in the system, such as sales history, customer preferences, or market trends. Once the reference factor has been defined, users can then adjust the quantity of an item in an assortment plan by entering a value for the reference factor. The system will then automatically adjust the quantity of the item based on the value entered for the reference factor.
  
  Tips & Tricks: 
  When using the reference factor feature in SAP Assortment Planning, it is important to remember that the value entered for the reference factor should be based on accurate and up-to-date information. Additionally, it is important to remember that adjusting the quantity of an item in an assortment plan based on a reference factor may not always result in an optimized assortment plan. Therefore, it is important to review and adjust the assortment plan after adjusting the quantity of an item based on a reference factor.
  
  Related Information: 
  For more information about using SAP Assortment Planning and its features, including reference factors, please refer to SAP's official documentation at https://help.sap.com/viewer/product/CA-RT-AP/latest/en-US.