How to manage slow and fast moving goods in Demand Planning

Hi All,
Kindly let me know how to manage slow and fast moving goods in Demand Planning.
1. First how to detect slow and fast moving goods
2. which DP model to use
3. Any Best practice while dealing with slow and fast moving goods
Thanks
Arun

Arun,
There are two main concerns with forecasting slow moving goods. For fast moving, yes, trend, level and seasonality combined with a decent demand level gets you through.
So, either you don't have demand in the market for that product; if the product is not critical (like go/no go spare parts) I recommend just averaging out the demand over a period and going with that. Any errors incurred there won't have a significant business impact. On the other hand if it is critical, safety stock and/or contractual obligations come to play.
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).
Hope this helps. Please let me know if this makes sense and/or applies to your question.
Rodrigo

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How to manage slow and fast moving goods in Demand Planning

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