What is hierarchical prior in SAP CA-DDF-RT - Demand Data Foundation for Retail?

SAP Term: hierarchical prior

• Component: CA-DDF-RT

• Component Name: Demand Data Foundation for Retail

• Description: The combination of a prior value and a prior weight that the system derives from product hierarchy data and/or location hierarchy data. Hierarchical priors serve to improve the basis for modeling and forecasting the demand of products with little or no historical data especially new products. Here, the hierarchical priors can replace the global priors because they reflect the behavior of products and locations similar to the new product.

Smart SAP Assistant

• Key Concepts: 
  Hierarchical Prior is a feature of the Demand Data Foundation for Retail (CA-DDF-RT) component of SAP. It allows users to define a hierarchy of demand data sources, with each source having a different priority. This allows users to prioritize certain sources of data over others, ensuring that the most accurate and up-to-date information is used in decision making.
  
  How to use it: 
  To use Hierarchical Prior, users must first define the hierarchy of data sources they wish to use. This can be done by assigning each source a priority level, with higher priority sources being used first. Once the hierarchy is defined, users can then select which sources they wish to use for their analysis. The system will then automatically prioritize the data from the highest priority source first.
  
  Tips & Tricks: 
  When defining the hierarchy of data sources, it is important to consider which sources are most reliable and up-to-date. This will ensure that the most accurate information is used in decision making. Additionally, it is important to consider how often each source is updated, as this will affect how quickly decisions can be made based on the data.
  
  Related Information: 
  For more information on Hierarchical Prior and other features of the Demand Data Foundation for Retail (CA-DDF-RT) component of SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on using this feature.