What is forecast confidence index in SAP CA-RT-PMR - SAP Promotion Management?

SAP Term: forecast confidence index

• Component: CA-RT-PMR

• Component Name: SAP Promotion Management

• Description: A configurable indicator of statistical confidence in the historical data based on which a particular demand forecast was calculated. A low FCI indicates that the system cannot make an informed prediction because of a possible data issue. Example: There is no sales history available for a particular offer type so that it is difficult to estimate the impact of this offer on the future unit sales.

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• Key Concepts: 
  The Forecast Confidence Index (FCI) is a metric used in SAP Promotion Management to measure the accuracy of a forecast. It is calculated by comparing the actual sales of a promotion to the forecasted sales. The higher the FCI, the more accurate the forecast. 
  
  How to use it: 
  The FCI can be used to measure the accuracy of a forecast and identify areas for improvement. It can also be used to compare different forecasts and determine which one is more accurate. Additionally, it can be used to identify trends in sales and make better predictions in the future. 
  
  Tips & Tricks: 
  When using the FCI, it is important to remember that it is only as accurate as the data that is used to calculate it. Therefore, it is important to ensure that the data used is up-to-date and accurate. Additionally, it is important to remember that the FCI does not take into account external factors such as weather or economic conditions that may affect sales. 
  
  Related Information: 
  The FCI is part of SAP Promotion Management, which is a tool used to manage promotions and campaigns. It provides features such as forecasting, budgeting, and reporting. Additionally, it can be integrated with other SAP products such as SAP ERP and SAP CRM.