Requisition pattern analysis and anomaly detection
- Requisition patterns analysis: This feature analyzes historical requisition data to identify patterns in quantity, timing (for example, weekly, monthly, quarterly), and item pricing
- Anomaly detection: The system flags requisitions that significantly deviate from expected quantity and cost. There are two types of anomalies: cost anomalies and quantity anomalies.
Cost anomaly detection calculation
To calculate for cost anomaly detection: normal range = average ± 1.5 × standard deviation
- The average cost of the item.
- The standard deviation, indicating how much the cost typically varies.
- A range of acceptable values based on the average and standard deviation. For example, lower and upper bounds are determined.
- Any cost that falls outside this range is treated as an anomaly.
Quantity anomaly detection calculation
The process analyzes historical order data and transforms it into Item–Requesting Location pairs. Based on this data, the system uses AI to calculate the lower and upper bounds for normal quantity ranges.
The normal range is defined as: normal range = average ± 1.5 × standard deviation
- Quantity is within the normal range
- Quantity is below the normal range
- Quantity is above the normal range
Pattern detection calculation
This process analyzes historical order data to automatically determine the typical ordering frequency of each item at each requesting location such as daily, weekly, monthly, quarterly, or irregular. By grouping data by item and location, it assesses the consistency of order quantities across various time intervals and identifies the pattern with the least variation. If no consistent pattern is found, the item is classified as irregular. Anomalies are displayed through a widget using a notification mechanism to ensure prompt action.
- Frequency: Daily, weekly, or monthly, quarterly, or yearly depending on the AI-analyzed pattern.
- Messages to the user:
- Quantity is within the normal range
- Quantity is below the normal range
- Quantity is above the normal range
- Irregular pattern if no pattern is found for ordering
- Expected cost: Displays the expected cost for the requisition line.
- Ordered: Shows the quantity specified on the requisition line.