What is causal forecast in SAP CA-DDF-RT - Demand Data Foundation for Retail?

SAP Term: causal forecast

• Component: CA-DDF-RT

• Component Name: Demand Data Foundation for Retail

• Description: A forecast that is calculated based on the assumption that the future demand will be influenced by changes in external future variables such as a planned promotion or an upcoming holiday season. The effect of future variable changes on the forecast can be estimated by analyzing modeling the historical demand for the product and historical variable changes. The causal forecast is then generated based on this model.

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• Key Concepts: 
  Causal forecast is a forecasting method used in SAP’s Demand Data Foundation for Retail (CA-DDF-RT) component. It uses historical data to predict future demand based on the relationship between the demand and its influencing factors. This method is useful for predicting demand in retail, where there are many influencing factors such as seasonality, promotions, and economic conditions. 
  
  How to use it: 
  In order to use causal forecast in SAP’s Demand Data Foundation for Retail (CA-DDF-RT) component, you need to first define the influencing factors that will be used in the forecasting process. These factors can include seasonality, promotions, economic conditions, etc. Once these factors have been defined, you can then use the causal forecast algorithm to generate a forecast based on the historical data and the defined influencing factors. 
  
  Tips & Tricks: 
  When using causal forecast in SAP’s Demand Data Foundation for Retail (CA-DDF-RT) component, it is important to ensure that the influencing factors you define are accurate and up-to-date. This will help ensure that your forecasts are as accurate as possible. Additionally, it is important to regularly review your forecasts and adjust them if necessary. 
  
  Related Information: 
  For more information on causal forecasting in SAP’s Demand Data Foundation for Retail (CA-DDF-RT) component, please refer to the official SAP documentation. Additionally, there are many online resources available that provide further information on this topic.