Example 2 - Simple median calculated on discount percentage
When Simple Median is selected to determine the midpoint value of SSP and the SSP Band Calc On field is DISC_PCT, the SSP Analyzer will do the calculations in the following order to derive SSP%.
1. Calculate the median SSP%.
The Median SSP% is calculated based on the following formula:
Median SSP% = MEDIAN (Discount%)
The following table shows the discount percentage of each transaction line in this example.
|
ITEM_NUM |
List Price |
Sell Price |
SSP Sell% (%List) |
Discount% |
|---|---|---|---|---|
|
HARDWARE_FV |
7049 |
6785 |
96.25% |
3.75% |
|
HARDWARE_FV |
7059 |
6613 |
93.68% |
6.32% |
|
HARDWARE_FV |
7299 |
6506 |
89.14% |
10.86% |
|
HARDWARE_FV |
7061 |
6253 |
88.56% |
11.44% |
|
HARDWARE_FV |
7010 |
6123 |
87.35% |
12.65% |
|
HARDWARE_FV |
7372 |
6369 |
86.39% |
13.61% |
|
HARDWARE_FV |
7465 |
6090 |
81.58% |
18.42% |
|
HARDWARE_FV |
7344 |
5555 |
75.64% |
24.36% |
|
HARDWARE_FV |
7249 |
5343 |
73.71% |
26.29% |
|
HARDWARE_FV |
7572 |
5281 |
69.74% |
30.26% |
|
HARDWARE_FV |
7040 |
4771 |
67.77% |
32.23% |
|
HARDWARE_FV |
7041 |
4438 |
63.03% |
36.97% |
|
HARDWARE_FV |
7535 |
4741 |
62.92% |
37.08% |
|
HARDWARE_FV |
7587 |
4628 |
61.00% |
39.00% |
There are 14 transactions altogether. According to the simple median method, SSP Discount% equals the average discount percentage of 7th and 8th transactions.
Median SSP Discount% = (18.42% + 24.36%)/2 = 21.39%
2. Calculate the High Band SSP Discount% value.
The High Band SSP Discount% is derived based on the following formula:
High Band SSP Discount% = Median SSP Discount% + (Median SSP Discount% * High Band Percent/100)
The High Band Percent is specified by the High/Ceiling% field in the SSP Analyzer template or SSP batch. The value is 15 in this example.
High Band SSP Discount% = 21.39% + (21.39% * 15/100) = 24.60%
3. Calculate the Low Band SSP Discount% value.
The Low Band SSP Discount% is derived based on the following formula:
Low Band SSP Discount% = Median SSP Discount% - (Median SSP Discount% * Low Band Percent/100)
The Low Band Percent is specified by the Low/Floor% field, which 15 in this example.
Low Band SSP Discount% = 21.39% - (21.39% * 15/100) = 18.18%
4. Calculate the High Band SSP% and Low Band SSP% based on the following formulas:
High Band SSP% = 100 – Low Band Discount%
Low Band SSP% = 100 - High Band Discount%
4. Determine whether each transaction is compliant within the SSP% (or SSP Discount%) range.
If the Discount% of a transaction is within this SSP Discount% range (18.18% ~ 24.60%), this transaction is marked as compliant by the Analyzer; otherwise, the transaction is incompliant.
5. Calculate the compliance percentage.
The actual compliance percentage can be calculated by the following formula and then compared to the Compliance% value specified in the SSP Analyzer template or SSP batch.
Compliance Percentage = (Total number of compliant transactions/Total number of transactions) * 100