What is clustering analysis in SAP CA-RT-AP - SAP Assortment Planning?

SAP Term: clustering analysis

• Component: CA-RT-AP

• Component Name: SAP Assortment Planning

• Description: The process of grouping business objects into clusters based on selected key performance indicators and attributes.

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• Key Concepts: 
  Clustering analysis is a type of data analysis used to group similar objects together. It is used in SAP Assortment Planning (CA-RT-AP) to identify patterns in customer buying behavior and create product assortments that meet customer needs. 
  
  How to use it: 
  Clustering analysis can be used to identify customer segments and create product assortments that are tailored to each segment. It can also be used to identify trends in customer buying behavior and create product assortments that are more likely to be successful. 
  
  Tips & Tricks: 
  When using clustering analysis, it is important to consider the size of the customer segment and the number of products in the assortment. It is also important to consider the customer’s preferences and needs when creating an assortment. 
  
  Related Information: 
  Clustering analysis is related to other data analysis techniques such as market basket analysis, which is used to identify relationships between products. It can also be used in conjunction with predictive analytics to create more accurate forecasts of customer demand.