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

SAP Term: white noise

• Component: SCM-APO-FCS

• Component Name: Demand Planning

• Description: White noise is a technical term used in conjunction with forecasting and in particular with time series models univariate forecasting. Basically it means that the system cannot find a model that fits the historical data as there is too much scatter. The values for the dependent variable can only be predicted with an error function. Technically it means that the autocorrelation function value is smaller than a particular predefined value.

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• Key Concepts: 
  White noise is a term used in SAP's SCM-APO-FCS Demand Planning component to describe random fluctuations in demand that cannot be predicted. It is a type of random variation that is not related to any underlying trend or pattern. 
  
  How to use it: 
  White noise can be used to help identify and account for random fluctuations in demand. This can help organizations better plan for future demand and ensure that they are able to meet customer needs. 
  
  Tips & Tricks: 
  When using white noise, it is important to remember that it is only one factor in predicting future demand. Other factors such as seasonality, economic conditions, and customer preferences should also be taken into account when making predictions. 
  
  Related Information: 
  For more information on white noise and its use in SAP's SCM-APO-FCS Demand Planning component, please refer to the official SAP documentation.