Forecasting Models in Demand Planning.

Hi experts,
want to know in details and also to practice various forecasting models in Demand Planning, from beginning.
please suggest.
Regards
Bhupendra

Hi Bhupendra,
There are various forecasting models to use in business like automatic model and manual model as a broad category. 
In detailed, there are models like constant model, trend model, season models, trend seasonal etc.,
Forecasting models are very simple and mostly based on STATISTICAL TECHNIQUES.  If you have sound knowledge in various statistical methodologies, it will be very easy to followup all the models.
Moreover, while selecting the best model for an organisation, one needs to study and identify the key performance indicators for improvement and accordingly the forecast model needs to be aligned.
The method to find this kind of model is the BEST FIT METHOD (it could be one or more or combo of it).
In demo systems or sandbox system, you can populate various data with various models and try to analyse the one which satisfies business requirements. You can also take the help of BUSINESS PLANNING ANALYSER to build the customised forecasting model which can be part of business side or from consulting side.
Regards
R. Senthil Mareeswaran.

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  • Best way to know correct forecast model - process chain set up with multiple forecast models

    Hi Experts,
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  • Advantages of Implementing Demand Planning in APO

    Hi All:
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    Hi,
    before to begin: I don't really understand what you are saying: you say the forecast is not use for planning, however your think it is the cause of overstock... how can that be?
    I understand the logic for componenents, but not for finish good here
    Anyway, regarding your questions:
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    However I suggest you to do a bigger analysis of your business needs... it looks ot me that you will need more than DP.
    You could use SNP to plan your finish good and components (or use a strategy such as planning at assembly level).
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    I personnally think that DP BOM should be use only is specific cases. You better have to plan your component in SNP, which will be far more flexible.
    In one sentence, I think that if you do decide for a DP implementation now, you biggest benefit should be: later on you will be able to use SNP for planning.
    Well that is what I think....
    Good luck for your challenges!
    Julien

  • How to manage slow and fast moving goods in Demand Planning

    Hi All,
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    Thanks
    Arun

    Arun,
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    OR, if there is market demand but your market share is too low for whatever reason, then it gets tricky because you need a predictor variable(s) for which you have good knowledge off (such as CPI index, demand for related products, etc). The forecast is then done on the predictor variable(s) and the low market share applied to 'translate' the expected demand to the product in question. Unfortunately, the case of low demand/low market share I have no idea of how to implement it on SAP. Since forecasting is just the tip of the iceberg, it may pay to do it outside of SAP (say in Excel) and manually input it (unless the products are many and varied).
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    Rodrigo

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