What is seasonal index in SAP PP-MP - Production Planning?

SAP Term: seasonal index

• Component: PP-MP

• Component Name: Production Planning

• Description: An index with which the system determines and updates the seasonal percentage of the forecast value, if a seasonal model or a seasonal trend model is used to calculate the forecast.

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• Key Concepts: 
  Seasonal index is a feature in SAP Production Planning and Master Data (PP-MP) that allows users to adjust the production plan according to seasonal demand. It is used to identify the seasonal demand for a particular product or material and adjust the production plan accordingly. The seasonal index is calculated by comparing the actual demand for a product or material over a period of time with the average demand for that same period. 
  
  How to use it: 
  To use the seasonal index, users must first define the seasonal periods in which they want to compare the actual demand with the average demand. This can be done by setting up a seasonal calendar in SAP PP-MP. Once the seasonal periods are defined, users can then enter the actual demand for each period and compare it with the average demand for that same period. The difference between these two values is then used to calculate the seasonal index. 
  
  Tips & Tricks: 
  When setting up a seasonal calendar, it is important to consider factors such as holidays, weather patterns, and other external factors that may affect demand. This will help ensure that the seasonal index is accurate and reflects the true seasonal demand for a product or material. Additionally, it is important to regularly review and update the seasonal calendar as needed in order to ensure that it remains accurate. 
  
  Related Information: 
  For more information on using the seasonal index in SAP PP-MP, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are several online resources available that provide detailed tutorials on how to use this feature in SAP PP-MP.