What is cannibalization group in SAP SCM-APO-FCS - Demand Planning?

SAP Term: cannibalization group

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: Groups together products whose sales are impacted, either positively or negatively, by the same promotion. The mutual dependency of the sales of similar products is known as cannibalization. See also the glossary entry for cannibilization.

Smart SAP Assistant

• Key Concepts: 
  A cannibalization group is a feature of SAP's Demand Planning component of the Supply Chain Management-Advanced Planner and Optimizer (SCM-APO-FCS). It is used to identify and manage the potential for one product to cannibalize the sales of another. This is done by grouping products that are likely to compete with each other in the same market. 
  
  How to use it: 
  The cannibalization group feature allows users to set up a group of products that are likely to compete with each other in the same market. The user can then assign a cannibalization factor to each product in the group, which will be used to adjust the forecast for each product in the group. This adjustment will take into account the potential for one product to cannibalize the sales of another. 
  
  Tips & Tricks: 
  When setting up a cannibalization group, it is important to consider all potential factors that could affect the sales of each product in the group. This includes factors such as pricing, availability, and customer preferences. Additionally, it is important to regularly review and update the cannibalization factors assigned to each product in order to ensure that they accurately reflect current market conditions. 
  
  Related Information: 
  For more information on SAP's Demand Planning component of SCM-APO-FCS, please refer to SAP's official documentation at https://help.sap.com/viewer/product/SCM_APO_FCS/7.5/en-US.