What is what-if forecast in SAP IS-R-DM - Demand Management?

SAP Term: what-if forecast

• Component: IS-R-DM

• Component Name: Demand Management

• Description: A speculative prediction meant to gauge the effectiveness of a particular course of action. What-if forecasts are usually produced during planning to judge the impact of a particular activity that may or may not be executed in the future.

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• Key Concepts: 
  What-if forecast is a feature of SAP IS-R-DM Demand Management that allows users to simulate different scenarios and analyze the potential outcomes. It enables users to make informed decisions by predicting the impact of changes in demand, supply, and other factors on the overall supply chain. 
  
  How to use it: 
  To use what-if forecasting, users must first define the parameters of the forecast. This includes setting up the time period, selecting the data sources, and defining the forecasting method. Once these parameters are set, users can then enter their assumptions and run the simulation. The results of the simulation can then be used to make decisions about future supply chain operations. 
  
  Tips & Tricks: 
  When using what-if forecasting, it is important to ensure that all assumptions are realistic and accurate. This will help ensure that the results of the simulation are reliable and can be used to make informed decisions. Additionally, it is important to regularly review and update the assumptions used in the simulation to ensure that they remain relevant and accurate. 
  
  Related Information: 
  What-if forecasting is a powerful tool for managing supply chain operations. It can also be used in conjunction with other features of SAP IS-R-DM Demand Management such as inventory optimization and demand planning. Additionally, what-if forecasting can be used in combination with other analytical tools such as predictive analytics to gain further insights into supply chain operations.