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

SAP Term: Demand Planning

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: Application component in the Advanced Planner and Optimizer APO that allows you to forecast market demand for your company's products and produce a demand plan. APO has a data mart in which you store and maintain the information necessary for the demand planning process in your company. Using this information along with user-defined planning layouts and interactive planning books, you can integrate people from different departments into the forecasting process. The APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on demand history as well as any number of causal factors, and use a consensus-based approach to consolidate the results. Marketing intelligence and management adjustments can be added by using forecast overrides and promotions. The seamless integration with APO Supply Network Planning supports an efficient S&OP process.

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• Key Concepts: 
  Demand Planning is a component of SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) module. It is used to forecast customer demand and plan for the necessary resources to meet that demand. It uses statistical methods to analyze historical data and predict future demand. It also takes into account external factors such as seasonality, economic trends, and customer preferences. 
  
  How to use it: 
  Demand Planning can be used to create a demand plan for a specific product or group of products. This plan can be used to determine the necessary resources needed to meet customer demand. It can also be used to identify potential risks and opportunities in the supply chain. The demand plan can be used to create a production plan, which can then be used to optimize inventory levels and production schedules. 
  
  Tips & Tricks: 
  When creating a demand plan, it is important to consider external factors such as seasonality, economic trends, and customer preferences. This will help ensure that the demand plan is accurate and up-to-date. Additionally, it is important to regularly review the demand plan and make adjustments as needed. 
  
  Related Information: 
  For more information on Demand Planning, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information on Demand Planning and other components of SAP's SCM-APO-FCS module.