What is forecast-based planning in SAP IS-R - SAP for Retail?

SAP Term: forecast-based planning

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Special procedure in consumption-based planning which is based on future requirements predictions calculated by the forecast. The integrated forecast program allows forecast values for future requirements to be calculated. These values are the basis for the planning run.

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• Key Concepts: 
  Forecast-based planning is a feature of the IS-R SAP for Retail component that enables retailers to plan their inventory and sales based on forecasts of customer demand. It uses historical data to create a forecast of future demand, which can then be used to plan inventory and sales. This helps retailers to better manage their inventory and sales, as well as reduce costs associated with overstocking or understocking.
  
  How to Use It: 
  Forecast-based planning can be used in the IS-R SAP for Retail component by first creating a forecast of customer demand. This can be done by analyzing historical data and using predictive analytics to create a forecast. Once the forecast is created, it can be used to plan inventory and sales. This helps retailers to better manage their inventory and sales, as well as reduce costs associated with overstocking or understocking.
  
  Tips & Tricks: 
  When using forecast-based planning in the IS-R SAP for Retail component, it is important to ensure that the forecast is accurate. This can be done by regularly updating the forecast with new data and using predictive analytics to ensure accuracy. Additionally, it is important to monitor the accuracy of the forecast over time to ensure that it remains accurate.
  
  Related Information: 
  For more information on forecast-based planning in the IS-R SAP for Retail component, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature effectively.