Guide for Global & Local Factors

Creating Global Factor

A global causal factor has time-varying data that applies in the same way to all items and locations.

To create a global causal factor:

Create the global causal factor within the Business Modeler user interface, as follows:
1. Click Data Model > Global Factors > Options to access the global factor user interface.
2. Select New Factor from the icons appeared on the screen. The New Factor dialog box
appears.



3. Type in the factor name.



4. Click Add New Factor. The Business Modeler adds a new column to the Inputs table.

The data can be loaded in the new column by using a script, through database, or the Business Modeler.

To load, view or edit data using Business Modeler, do the following:
1. Click Data Model > Global Factors > Options
2. Select the icon Choose Factor from the top.
3. The Choose Factor dialog box appears. Check the check box for each of the causal factors you
wish to view. Make sure that Date is selected so that you can see the dates along with the causal
factor data.



4. Click OK
5. Click the Create View icon at the top besides New Factor icon.

Business Modeler displays a table that shows the value of each global factor over time. This
table displays one row for each base time bucket in the planning horizon. Each column
corresponds to one global factor.



6. Select the cell or cells to be edited. The editable cells are colored white. When selected, the cells
turn yellow.
7. Click the Edit Data link at the top. The Edit Data dialog box appears.



8. Type the number required and clicks OK.
9. Click Save to save your changes or Click Cancel to close the dialog box.


Creating a Local Causal Factor

A local causal factor has time-varying data that is potentially different for each item-location
combination. Due to their time varying nature they are created as columns in sales_data table. First of
all a column has to be created in sales_data table which will be used as local causal factor. Column can
be created through Business Modeler. Follow the steps below to create a column in sales_data table:

1. Go to Business Modeler > Tools > Database > Alter Table. It opens a box named Select Table.



2. Search for Sales_Data table in the list and select it. Then click OK.
3. A table opens with list of all the columns of sales_data and their description (data type etc).



4. Click on Add button below. A new empty row appears the end.



5. Fill in the column name, column type, width and other details and then click Save.
6. Table is altered and the new column is created.


Configuring Global Factors and Local Causal Factors

Here we provide information as in how the Forecast Engine will pick and use Global and Local Factors
and forecast accordingly.

To configure a causal factor (global & local):

1. Go to Business Modeler. Click Engine > Forecast Tree. Or click the Forecast Tree button.
2. Select Engine Profile as Batch. Click Next.



3. Click Next repeatedly until you reach the Causal Factors dialog box.


4. If the causal factor is not yet listed here, do the following:
Click Add button on the right side of the box. A new row appears in the end.
Describe the new causal factor by specifying the following:
a) Factor Name: If its a Global Factor, the name should be same as that of the column
name in INPUTS table. If its a Local Factor, then either it can be a name of the column
created in sales_data table or it can be any name but then the name of the column must
be specified in the expression in the Local Function field.
b) Factor Type: Choose either Global or Local. If its a column created in INPUTS then select
Global. If the column is created in Sales_Data then select Local.
c) Following flags can be filled using the table below:

Causal Factor Short Long Non-Seasonal Multiplicative
Group1
Multiplicative
Group 2
If factor is
predictable
function of
time (regular in
nature)
Usually not yes no If factor varies
by day
If factor varies
by month
If factor is not
a predictable
function of
time (irregular
Usually not yes yes no No
in nature)

d) Fill Causals: Do not enable this check box.
e) Shape Indicator: Not applicable (keep it unchecked)
f) Omit Seasonal: Not applicable (keep it unchecked)
g) Local Function: Applicable for Local Causal Factors. It is a SQL expression that describes
how to aggregate causal factor data from the lowest level data. One of the following
aggregate functions can be used: Min, Max, Sum, Avg.
Since we are inserting 0 and 1 in these columns, Max can be used as an aggregate
function. Within the expression, refer to the name of the causal factor (the column
name in which the causal factor is stored).
h) Add comments to the Comments field, if desired.
Click Validate to check the validity of the configuration.
Click Save to save changes
Click Exit.