What is seasonal harmonics in SAP CA-DDF-RT - Demand Data Foundation for Retail?

SAP Term: seasonal harmonics

• Component: CA-DDF-RT

• Component Name: Demand Data Foundation for Retail

• Description: A mathematical transformation of time into periodic sine and cosine waves. Combinations of harmonics are used to model and forecast year-over-year recurring seasonality in demand, by fitting parameters used to weight each harmonic. The seasonal harmonics are similar in concept to the splines used to model and forecast the demand during variable seasons.

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• Key Concepts: 
  Seasonal harmonics is a feature of the Demand Data Foundation for Retail (CA-DDF-RT) component of SAP. It is used to identify and analyze seasonal patterns in sales data. Seasonal harmonics uses statistical methods to identify and analyze the cyclical patterns in sales data, such as monthly or quarterly sales trends. This helps businesses better understand their sales patterns and make more informed decisions about their operations. 
  
  How to use it: 
  Seasonal harmonics can be used to identify and analyze seasonal patterns in sales data. To use it, businesses must first collect their sales data and input it into the Demand Data Foundation for Retail component of SAP. Once the data is inputted, the seasonal harmonics feature can be used to identify and analyze the cyclical patterns in the data. This analysis can then be used to make more informed decisions about operations. 
  
  Tips & Tricks: 
  When using seasonal harmonics, it is important to ensure that the data being analyzed is accurate and up-to-date. Additionally, businesses should consider using other analytical tools in conjunction with seasonal harmonics to get a more comprehensive view of their sales patterns. 
  
  Related Information: 
  The Demand Data Foundation for Retail component of SAP also includes other features such as forecasting, demand planning, and inventory optimization. These features can be used in conjunction with seasonal harmonics to get a more comprehensive view of sales patterns and make more informed decisions about operations.