What is the formula used to calculate Sales per Point of Weighted Distribution (SPWD)?
The correct answer is A.
Sales per Point of Weighted Distribution measures sales productivity after accounting for distribution. In practical category-management terms, it answers: How much sales does the product generate for each point of weighted distribution it has?
The CPCM POS Data course includes scanned sales data and introduces key POS measures and definitions. NielsenIQ defines sales per distribution point, also called velocity, as a measure of sales per point of distribution and explains that it ranks products based on sales productivity after accounting for different distribution levels.
The formula is:
Sales per Point of Weighted Distribution = Total Sales / ACV Weighted Distribution
Option B is wrong because multiplying sales by distribution does not measure productivity; it inflates the result. Option C reverses the formula and gives distribution per sales dollar, which is not the metric being asked. Option D is mathematically meaningless for this measure because subtracting sales from distribution combines unlike units.
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