What is interaction effect in SAP CA-DDF-RT - Demand Data Foundation for Retail?

SAP Term: interaction effect

• Component: CA-DDF-RT

• Component Name: Demand Data Foundation for Retail

• Description: The influence that changes in one product driver product can have on the sales of another product drag product. Depending on the kind of product interaction, the interaction effect can be positive product affinity or negative product cannibalization.

Smart SAP Assistant

• Key Concepts: 
  Interaction effect is a feature of the Demand Data Foundation for Retail (CA-DDF-RT) component of SAP. It allows users to analyze the combined effect of multiple factors on demand. For example, a user can analyze how the combination of product type and season affects demand. 
  
  How to use it: 
  Interaction effect can be used to create more accurate forecasts by taking into account the combined effect of multiple factors. To use this feature, users must first define the factors they want to analyze and then select the interaction effect option in the forecasting tool. The tool will then generate a forecast based on the combined effect of the selected factors. 
  
  Tips & Tricks: 
  When using interaction effect, it is important to select factors that are relevant to the forecast. Selecting too many factors can lead to inaccurate results, so it is important to only select those that are necessary for the analysis. Additionally, it is important to consider how different factors interact with each other when selecting them for analysis. 
  
  Related Information: 
  Interaction effect is just one of many features available in SAP’s Demand Data Foundation for Retail (CA-DDF-RT) component. Other features include demand forecasting, inventory optimization, and pricing optimization. For more information about these features, please refer to SAP’s official documentation.