What is constrained forecast in SAP SCM-APO-FCS - Demand Planning?

SAP Term: constrained forecast

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: Forecast that reflects constraints such as manufacturing capacity limitations, raw material supply capabilities, and/or financial implications. Financial implications might include the cost associated with purchasing and/or producing additional products outside the normal supply channels.

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• Key Concepts: 
  Constrained forecast is a forecasting method used in SAP's Supply Chain Management-Advanced Planner and Optimizer-Forecast Consumption System (SCM-APO-FCS) Demand Planning component. It is a statistical forecasting technique that takes into account external factors such as customer demand, market trends, and other external influences. The constrained forecast method uses historical data to create a forecast that is constrained by the external factors. 
  
  How to use it: 
  To use the constrained forecast method, you must first enter the external factors into the system. This can be done manually or by importing data from an external source. Once the external factors have been entered, the system will generate a forecast based on the historical data and the external factors. The forecast can then be used to make decisions about inventory levels, production schedules, and other supply chain decisions. 
  
  Tips & Tricks: 
  When using the constrained forecast method, it is important to ensure that the external factors are accurate and up-to-date. This will help ensure that the forecast is as accurate as possible. Additionally, it is important to regularly review and update the external factors to ensure that they are still relevant and accurate. 
  
  Related Information: 
  The constrained forecast method is just one of many forecasting methods available in SAP's SCM-APO-FCS Demand Planning component. Other methods include time series forecasting, regression analysis, and Monte Carlo simulation. Each of these methods has its own advantages and disadvantages, so it is important to choose the right one for your specific needs.