What is seasonal trend model in SAP PP-MP - Production Planning?

SAP Term: seasonal trend model

• Component: PP-MP

• Component Name: Production Planning

• Description: A model used for a seasonal trend consumption pattern. A seasonal trend consumption flow is characterized by a continual increase or decrease of the mean value.

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• Key Concepts: 
  Seasonal trend model is a component of SAP Production Planning and Detailed Scheduling (PP-MP). It is used to forecast future demand based on past sales data. The model takes into account seasonal variations in demand, such as increased demand during the holiday season or decreased demand during summer months. It also takes into account any other factors that may affect demand, such as economic conditions or changes in customer preferences. 
  
  How to use it: 
  The seasonal trend model can be used to create a forecast for future demand. This forecast can then be used to plan production and inventory levels. To use the model, you will need to input historical sales data into the system. The system will then analyze the data and generate a forecast for future demand. 
  
  Tips & Tricks: 
  When using the seasonal trend model, it is important to ensure that the historical sales data is accurate and up-to-date. This will help ensure that the forecast generated by the model is as accurate as possible. Additionally, it is important to consider any external factors that may affect future demand when creating the forecast. 
  
  Related Information: 
  The seasonal trend model is just one of many forecasting methods available in SAP Production Planning and Detailed Scheduling (PP-MP). Other methods include exponential smoothing, moving average, and regression analysis. Each method has its own advantages and disadvantages, so it is important to choose the right one for your specific needs.