What is 'trend dampening' in SAP CA-DDF-RT - Demand Data Foundation for Retail?

trend dampening - Overview

• Component: CA-DDF-RT

• Component Name: Demand Data Foundation for Retail

• Description: A mechanism to reduce or limit the effect of the demand influencing factor DIF "trend" when the historically measured trend effect is extrapolated in demand forecasts. In some cases dampened trends in forecasts may increase forecast accuracy while in others they may not.

trend dampening - Details

• 
  Key Concepts: 
  Trend dampening is a feature of the Demand Data Foundation for Retail (CA-DDF-RT) component of SAP. It is used to reduce the impact of extreme values in a forecast, such as outliers or spikes. This helps to ensure that the forecast is more accurate and reliable. 
  
  How to use it: 
  Trend dampening can be enabled in the Demand Data Foundation for Retail (CA-DDF-RT) component of SAP. Once enabled, it will automatically reduce the impact of extreme values in a forecast. This can be done by setting a dampening factor, which determines how much the extreme values will be reduced. 
  
  Tips & Tricks: 
  When using trend dampening, it is important to set the dampening factor correctly. If it is set too low, then the extreme values may still have too much of an impact on the forecast. If it is set too high, then the forecast may be overly conservative and not reflect actual trends accurately. 
  
  Related Information: 
  Trend dampening is similar to smoothing, which is another technique used to reduce the impact of extreme values in a forecast. Smoothing works by averaging out values over a period of time, while trend dampening works by reducing the impact of individual values. Both techniques can be used to improve the accuracy and reliability of forecasts.