Budget Management Data Creation via Sales Ratio Allocation
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Solution Overview
Problem
Creating weekly or monthly budgets for each item category in companies is time-consuming and labor-intensive, especially for those with less knowledge and experience, as it requires manual consideration of past sales records, making it difficult to develop accurate and efficient budget plans.
Innovation Solution
A budget-management-data creating method that automatically allocates a total budget amount to partial periods based on past sales performance data, using a computer system to proportionally distribute the budget according to sales ratios of item categories, allowing for easy correction and display of budget amounts for each item category.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual budget allocation is performed based on past sales records, then budget accuracy can be improved through expert judgment, but the time consumption and labor intensity increase significantly
Solution Approach 1:
The system enables self-service by automatically allocating budgets using past sales data without requiring manual expert judgment. The computer automatically calculates and distributes budget amounts to partial periods and item categories based on historical sales performance, eliminating the need for human analysts to manually review and allocate budgets while maintaining accuracy through data-driven algorithms
Solution Approach 2:
The system changes the approach from qualitative expert judgment to quantitative automated calculation. By transforming the budget allocation process into a computational task that uses sales ratios and historical data as parameters, the system achieves both speed and accuracy simultaneously, resolving the contradiction between manual precision and automated efficiency
2Reliability
If manual budget allocation is performed by experts, then budget quality can be improved through experience, but dependence on individual knowledge and experience increases
Solution Approach 1:
The system eliminates dependence on individual expertise by implementing self-service automation. The computer independently performs budget allocation using objective sales data and predetermined rules, ensuring consistent quality without requiring human experts. This transforms the process from one dependent on individual knowledge to one that is self-sufficient and reproducible
Solution Approach 2:
The system copies the successful allocation patterns from past high-performing periods into future budgets. By replicating the sales ratios and allocation structures that have proven effective historically, the system maintains budget quality without requiring the original expert's continued involvement, thus reducing dependence on individual knowledge while preserving proven strategies
3Measurement precision
If detailed budget allocation is performed for each item category, then budget management precision can be improved, but the complexity of the allocation process increases
Solution Approach 1:
The system segments the budget allocation process into distinct automated steps: calculating total budget amounts, determining allocation ratios based on sales data, distributing budgets to partial periods, and further allocating to item categories. This segmentation transforms a complex manual process into manageable automated tasks that can be executed sequentially by the computer, maintaining precision while reducing perceived complexity
Solution Approach 2:
The system creates a universal allocation mechanism that handles multiple item categories and time periods through a single automated process. The same computational logic is applied across all categories and periods, eliminating the need for separate manual allocation procedures for each category. This multi-functional approach maintains detailed precision while simplifying the overall process through standardization
Data Source
AI summary
A budget-management-data creating method by a computer includes: accepting designation of a brand for which budget management data is to be created and a total budget amount; creating budget amounts for respective partial periods in a predetermined period, by automatically allocating the total budget amount to the respective partial periods, based on past sales performance data of the designated brand; displaying the created budget amounts to enable acceptance of a correction instruction; proportionally distributing upon accepting a correction of one of the budget amounts, a budget amount reflecting the correction and corresponding to the respective partial periods, the budget amount being proportionally distributed according to a sales ratio of respective item categories corresponding to the brand, the sales ratio corresponding to a corresponding past partial period; and displaying as a budget amount for each of the respective item categories for the respective partial periods, a result of the proportionally distributing.