Example 4 - Optimizer calculated on discount percentage
In this example, the Optimizer Scale field is 0.5 the SSP Band Calc On field is DISC_PCT in the SSP Analyzer template. The Low/Floor% field is 15 and the High/Ceiling% field is 15.
The SSP Analyzer will do the calculations in the following order to derive SSP%.
1. Build the test buckets based on the SSP Band Calc Type field in the SSP Analyzer template.
- If the SSP Band Calc Type field is PERCENT, use the following formulas:
Low Band% =100 - (100- Median%) * (100 + Low/Floor %)/100
High Band%= 100 - (100 - Median%) * (100 - High/Ceiling% )/100
For example,
|
Bucket# |
Median% |
Low Band% |
High Band% |
|---|---|---|---|
|
1 |
0 |
-15.00 |
15.00 |
|
2 |
0.5 |
-14.43 |
15.43 |
|
3 |
1 |
-13.85 |
15.85 |
|
4 |
1.5 |
-13.28 |
16.28 |
|
5 |
2 |
-12.70 |
16.70 |
|
6 |
2.5 |
-12.13 |
17.13 |
- If the SSP Band Calc Type field is ABSOLUTE, use the following formulas:
Low Band% = Median% - Low/Floor %
High Band%= Median% + High/Ceiling%
For example,
|
Bucket# |
Median% |
Low Band% |
High Band% |
|---|---|---|---|
|
1 |
0 |
-15.00 |
15.00 |
|
2 |
0.5 |
-14.50 |
15.50 |
|
3 |
1 |
-14.00 |
16.00 |
|
4 |
1.5 |
-13.50 |
16.50 |
|
33 |
16 |
1.00 |
31.00 |
|
34 |
16.5 |
1.50 |
31.50 |
|
35 |
17 |
2.00 |
32.00 |
|
36 |
17.5 |
2.50 |
32.50 |
3. Count the number of transactions whose Discount% falls into the range of each test bucket.
In this example, the number of transactions for each bucket is as follows:
|
Bucket# |
Median% |
Low Band% |
High Band% |
Number of Transactions |
|---|---|---|---|---|
|
112 |
55.50 |
47.18 |
63.83 |
401 |
|
113 |
56.00 |
47.60 |
64.40 |
399 |
|
114 |
56.50 |
48.03 |
64.98 |
400 |
|
115 |
57.00 |
48.45 |
65.55 |
472 |
|
116 |
57.50 |
48.88 |
66.13 |
472 |
|
117 |
58.00 |
49.30 |
66.70 |
472 |
|
118 |
58.05 |
49.73 |
67.28 |
470 |
4. Identify the bucket with the largest number of transactions.
In this example, buckets 115, 116, and 117 are identified.
5. Calculate Median SSP Discount% based on the following formula by using the transaction data in the identified buckets. (It is supposed the ENABLE_MULTI_PEAK_CALC profile is set to Y.)
Median SSP Discount% = (Bucket From Low Band% + Bucket To High Band%)/2
In this example, 3 buckets are identified. The From value of bucket 115 and the To value of bucket 117 are used.
Median SSP Discount% = (48.45 + 66.70)/2 = 57.58
6. Calculate Low Band SSP Discount% based on the following formula.
Low Band SSP Discount% = Median SSP Discount% - (Low/Floor% * ( 100 – Median SSP Discount%)/100)
In this example, the Low Band SSP Discount% is 51.22.
57.58 - (15 * (100 - 57.58)/100) = 51.22
7. Calculate the High Band SSP Discount% based on the following formula.
High Band SSP Discount% = Median SSP Discount% + (Low/Floor% * ( 100 – Median SSP Discount%)/100)
In this example, the High Band SSP Discount% is 63.94.
57.58 + (15 * (100 - 57.58)/100) = 63.94
8. Determine whether the Discount% of each transaction is compliant within the SSP Discount% range.
In this example, if the Discount% of a transaction is within this range (51.22 ~ 63.94), this transaction is marked as compliant by the Analyzer; otherwise, the transaction is incompliant.
9. 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