Telus TPM Documentation

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__**Price/Rate Generation**__

When using price_sale, where we do price generation from sales data, we will generate prices for a timeframe based on the sale data that fits within that timeframe. 

It is configured using Price Generation Period Type (week, month, quarter). When generating the price, we also have the Price Generation Strategy (average, min, max) that will do a weighted average (based on volume) or use the min/max price seen in that timeframe. We generate two different prices (with and without freight) to handle FOB/Delivered. 

The Price Generation Look-back Period is not used when generating prices, and we will not fill in months with no sales with fake price data. Instead, we use that configuration to "look back" N periods to see if there is a valid price from the past that could be used. Average Sale Price Change Tolerance is used to not recalculate the price for a period if some new sales data came in that may change it a fraction of a percent but wouldn't actually change the calculated price. Sales that would change the price by more than the configured percent will cause the current price for that timeframe to be invalidated, and a corrected price put in its place.

 

So, assuming that the Period Type is configured as 'monthly', let's say we have sales data for product 5432 and company XYZ that came in on April 5th at $10/cs, we have a claim that came in with a delivery date of the 15th (actual claim arrived in May), and we have extra sales data for the same product/company that came in April 25th at $20/cs. We are going to use the configured strategy to generate a price, and it will take into account the data from the 5th as well as the 25th.

Telus TPM Documentation

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