What is number of periods for seasonal moving average smoothing in SAP SCM-APO-FCS - Demand Planning?

SAP Term: number of periods for seasonal moving average smoothing

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: Smoothing factor for average seasonal indices. This factor is used in combination with forecast strategy 35, seasonal linear regression.

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• Key Concepts: 
  Number of Periods for Seasonal Moving Average Smoothing is a feature in SAP's Supply Chain Management - Advanced Planner and Optimizer - Forecasting and Simulation (SCM-APO-FCS) Demand Planning module. This feature allows users to define the number of periods used in the seasonal moving average smoothing algorithm. This algorithm is used to smooth out the seasonal fluctuations in demand data, making it easier to identify underlying trends. 
  
  How to Use It: 
  To use this feature, users must first select the “Number of Periods for Seasonal Moving Average Smoothing” option from the Demand Planning menu. Then, they must enter the desired number of periods into the field provided. The number of periods should be based on the length of the season and the amount of data available. Once the number of periods has been entered, users can click “OK” to save their changes. 
  
  Tips & Tricks: 
  When selecting a number of periods for seasonal moving average smoothing, it is important to consider both the length of the season and the amount of data available. If too few periods are selected, then the algorithm may not be able to accurately identify underlying trends. On the other hand, if too many periods are selected, then the algorithm may be too slow to respond to changes in demand. 
  
  Related Information: 
  For more information about using this feature in SAP's SCM-APO-FCS Demand Planning module, please refer to SAP's official documentation or contact your local SAP representative.