4. Material and location clusters¶

In this chapter, we will configure the material and location clusters described in the forecast configuration foundations using material and location characteristics. Clusters represent material or location subsets and can be configured using:

• product categories and families for material clusters;
• regions and channels for location clusters.

We will use the characteristics loaded in chapter 2.

At the end of this stage, there will be two material clusters representing the two existing product families.

For didactic simplicity, this tutorial does not segment locations. Because no location cluster will be created, the Default Location Cluster — a non-configurable default fallback cluster that receives every location not assigned to another cluster — will receive all 12 active locations.

This produces two distinct demand-forecast model configurations:

• Material cluster White Paper Finished Goods / location cluster Default Location Cluster;
• Material cluster Tissue Finished Goods / location cluster Default Location Cluster.

Exercise starting point¶

Use the result from chapter 2 as the starting checkpoint:

• 18 materials and 54 material-characteristic assignments are loaded;
• 12 locations and 12 location-characteristic assignments are loaded;
• Sales history contains 2,280 rows;

Cluster design¶

These clusters produce only the two effective combinations configured in the tutorial:

---
config:
  layout: elk
---
flowchart TB

  subgraph R1[" "]
    direction LR

    subgraph SG1["Combination 1"]
      direction LR

      L1["Default Location Cluster<br/><span style='font-size:10px;color:#64748b'>12 locations</span>"]
      M1["White Paper Finished Goods<br/><span style='font-size:10px;color:#64748b'>6 materials</span>"]
      C1["Forecast Configuration<br/>White Paper × Default Locations"]

      L1 --> C1
      M1 --> C1
    end

    F1["Cluster-level<br/>forecast — White Paper"]
    SG1 --> F1
  end

  subgraph R2[" "]
    direction LR

    subgraph SG2["Combination 2"]
      direction LR

      L2["Default Location Cluster<br/><span style='font-size:10px;color:#64748b'>12 locations</span>"]
      M2["Tissue Finished Goods<br/><span style='font-size:10px;color:#64748b'>2 materials</span>"]
      C2["Forecast Configuration<br/>Tissue × Default Locations"]

      L2 --> C2
      M2 --> C2
    end

    F2["Cluster-level<br/>forecast — Tissue"]
    SG2 --> F2
  end

  R1 ~~~ R2
  style R1 fill:none,stroke:none
  style R2 fill:none,stroke:none

Open the workspace¶

1. In the sidebar, select the Configuration icon.

2. In Core Configuration, select Clustering.

1. Open the Dimension dropdown and choose Material clusters.

Create the white-paper cluster¶

1. With Dimension = Material clusters, choose New material cluster.
2. Enter White Paper Finished Goods under Description.
3. Enter priority 10.
4. Choose Add characteristic.

1. Keep Criterion = Material characteristic, select Material Stage under Characteristic, then Finished Good under Values.
2. Choose Add characteristic again.
3. Select Product Family under Characteristic, then White Paper under Values.
4. Check the description, priority, and both rules.

1. Choose Save cluster. The platform saves the rules, closes the New material cluster editor, and shows the save confirmation. The page returns with no cluster selected.
2. Under Cluster, select White Paper Finished Goods.
3. The page now shows Material cluster #ID, the saved rules in summary mode, and the new Cluster Members section below the actions. Materials in this cluster then loads automatically. Check the six white-paper finished goods; rolls and skids must not appear.

Create the tissue cluster¶

1. Still under Material clusters, choose New material cluster.
2. Enter Tissue Finished Goods and priority 20.
3. Add Material Stage = Finished Good.
4. Add Product Family = Tissue Paper.
5. Save the cluster.
6. Under Cluster, select Tissue Finished Goods again.
7. Wait for Materials in this cluster to update automatically, then check the two members: FG_TISSUE_DOUBLE_12 and FG_TISSUE_TRIPLE_12.

The Cluster members panel is resolved from the saved definition. It proves that the rules selected the expected materials, not merely that the form was filled in.

Read the result¶

The reconciled tutorial state is specific: White Paper Finished Goods has 6 products, Tissue Finished Goods has 2, and the other 8 materials remain in Default Material DP Cluster. Because the tutorial creates no specific location cluster, 100% of its 12 locations remain in Default Location Cluster.

Checkpoint¶

• 2 functional material clusters with 6 and 2 members;
• the other 8 materials allocated to Default Material DP Cluster;
• no statistical configuration or Demand Plan created;
• rules and members reloaded from the server, not only displayed in a draft.

The next lesson creates a monthly Demand Planning execution profile. Holt-Winters configuration for both combinations follows in the next chapter. Return to the course map or continue to the demand execution profile.