What is 'like modeling' in SAP SCM-APO-FCS - Demand Planning?

like modeling - Overview

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: Most forecasting methods are based on historical data. For new products, products with short lifecycles or products for which not enough data is available, "like" modeling can be applied. The "like" modeling approach allows the planner to use the historical data of another product or products "like products" to create demand forecasts. In APO , such forecasts are based on "like profiles" which contain information as to which "like products" should be used and how their data should be scaled.

like modeling - Details

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  Key Concepts: 
  Like modeling is a forecasting technique used in SAP's SCM-APO-FCS Demand Planning component. It is based on the idea that similar products or services tend to have similar demand patterns. This technique uses historical data from similar products or services to predict future demand for a given product or service. 
  
  How to use it: 
  Like modeling can be used to forecast demand for a given product or service by analyzing the historical data of similar products or services. This data can be used to create a model that can be used to predict future demand for the given product or service. The model can then be used to make decisions about inventory levels, pricing, and other aspects of the supply chain. 
  
  Tips & Tricks: 
  When using like modeling, it is important to ensure that the data being used is accurate and up-to-date. Additionally, it is important to consider any external factors that may affect the demand for the product or service being forecasted. 
  
  Related Information: 
  Like modeling is just one of many forecasting techniques available in SAP's SCM-APO-FCS Demand Planning component. Other techniques include time series analysis, regression analysis, and Monte Carlo simulation.