Direction-based optimization adjusts one or more data input measures to maximize or minimize the selected objective measure while satisfying the defined constraints.
Select the target cell in the formula measure. In the Planning ribbon, select Optimize. In this example, select the target cell from the Profit per unit measure.
To achieve direction-based optimization,
Set Objective to Maximize to achieve the highest possible value. For example, maximize revenue, profit, or return on investment.
Set Objective to Minimize to achieve the lowest possible value. For example, minimize cost, expenses, or inventory holding costs.
In this example, the Objective is set to Maximize to arrive at the maximum Profit per unit.
Select the data input measures (independent variables) to optimize from Variables to Update. In this case, Optimize adjusts the COGS(Projection) and Units Sold(Projection) to meet the maximum Profit per unit value. Select Next.
Select Add Constraint to set thresholds. Specify the allowed adjustment range for the data input measures. Each data input measure can have one constraint. In this scenario, constraints are specified for COGS(Projection) and Units Sold(Projection). To know more about adding constraints, see configure optimization thresholds.
This step is optional. Skip this step if you do not have to set thresholds for optimization.
Review the adjusted value and select Apply to update the data input measure
The Profit per unit is increased to 10.2 after considering the specified constraints range by changing the Units Sold(Projection) to 2k.
To meet an objective at an aggregated level, apply optimize on parent (total) cells. When optimize runs on a parent cell, it recalculates the required change and distributes the updated value to the underlying editable child cells.
Select the target cell in the formula measure. Then go to Planning>Optimize. In this example, select the target cell from the Profit per unit measure.
Set objective as Minimize and select variables to update. In this case, Revenue(Projection) is adjusted to meet the objective.
Select Add Constraint and choose the variable to which the constraint applies. For example, Revenue(Projection) is selected as Variable and the min and max bounds are set for it.
Review the adjusted value and select Apply to update the data input measure - in this case, Revenue(Projection).
Optimize decreased Revenue(Projection) at the parent level and distributed the value proportionally across the child rows to achieve the target Profit per unit.
NOTE : Values of locked child cells are not changed.
Learn more about optimization on forecast measures here
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