Purpose
This document defines how the New Demand Stream (NDS) operates in SIMCEL, detailing the logical processes involved.
Prerequisites
To create an NDS event, ensure the following:
- The product for which you want to create a demand stream is defined in the product master.
- The proxy product has been chosen and has historical demand in the selected segment. For instance, if you create an NDS event for Customer X with Product A and use Product B as the proxy, ensure that Product B has historical demand from Customer X.
Logic
Creating an Event with a New Product Introduction (NPI) in the Overall Business
Assume the following scenario:
- Product A is a new product, and you want to set a manual demand stream from February to May 2024, with 4,000 units per month.
- Product A is planned to be sold to Customers X and Y. Thus, the NDS segment is Product A - Customers X and Y.
- In the Product Proxy drop-down, select Product B as the proxy product.
Based on this event setting, when the event is assigned to a specific scenario, SIMCEL will:
- Calculate the Allocation Percentage of the Product:
- The tool first calculates the total sales volume for each month, regardless of the year. For example, for Product B,
- For Customer X: 1,000 units were sold to in February 2022 and 2,000 units in February 2023,
- For Customer Y: 2,000 units were sold to in February 2022 and 5,000 units in February 2023
- The tool recognizes that Product B has sold 3,000 units to Customer X and 7,000 to Customer Y in February.
- Then, the tool calculates the allocation percentage of the proxy segment on the given month. 30% for Customer X and 70% for Customer Y in February
- Assign the Demand Stream to Segments:
- When user set an NDS event with 4,000 units of Product A in February, 30% of the demand (1,200 units) will be allocated to Customer X, and 70% (3,600 units) will be allocated to Customer Y.