What is 'baseline demand' in SAP CA-DDF-RT - Demand Data Foundation for Retail?

baseline demand - Overview

• Component: CA-DDF-RT

• Component Name: Demand Data Foundation for Retail

• Description: A value calculated to quantify regular consumption or demand not attributed to discrete and specifically defined influencing factors such as promotions or calendar effects, for example. Unlike the deseasonalized baseline demand, the baseline demand includes the effects of trend, seasonality, weekly cycles, and holidays, if present in the model.

baseline demand - Details

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  Key Concepts: 
  Baseline demand is a term used in the CA-DDF-RT Demand Data Foundation for Retail component of SAP. It is a forecast of the expected demand for a product or service over a given period of time. This forecast is based on historical data and other factors such as seasonality, trends, and promotions. 
  
  How to use it: 
  Baseline demand can be used to help businesses plan their inventory and production levels. It can also be used to identify potential opportunities for growth or areas where demand may be declining. By understanding baseline demand, businesses can make more informed decisions about their operations and resources. 
  
  Tips & Tricks: 
  When creating a baseline demand forecast, it is important to consider all relevant factors such as seasonality, trends, and promotions. Additionally, it is important to regularly review and update the forecast as new data becomes available. 
  
  Related Information: 
  Baseline demand is closely related to other forecasting techniques such as trend analysis and regression analysis. Additionally, it is often used in conjunction with other SAP components such as the Supply Chain Management (SCM) component.