What is forecast horizon in SAP SCM-FRE - Forecasting and Replenishment?

SAP Term: forecast horizon

• Component: SCM-FRE

• Component Name: Forecasting and Replenishment

• Description: The number of periods weeks in the future for which a forecast is to be calculated. The operational forecast horizon is required for calculating requirements. For collaborative scenarios, such as CPFR, a tactical forecast whose forecast horizon can go beyond the operational forecast can be created.

Smart SAP Assistant

• Key Concepts: 
  Forecast horizon is a term used in SAP's Forecasting and Replenishment (SCM-FRE) component. It is the length of time that a forecast covers, and it is used to determine the amount of inventory that needs to be replenished. The forecast horizon can be set to any length of time, from days to months. 
  
  How to use it: 
  The forecast horizon is set in the SAP system by the user. The user can select the length of time for the forecast horizon, which will determine how much inventory needs to be replenished. The user can also adjust the forecast horizon as needed, depending on the current inventory levels and demand. 
  
  Tips & Tricks: 
  It is important to set an appropriate forecast horizon for your business needs. If the forecast horizon is too short, it may not provide enough time for inventory replenishment. If the forecast horizon is too long, it may lead to overstocking and unnecessary costs. 
  
  Related Information: 
  The forecast horizon is closely related to other SAP components such as Demand Planning (SCM-DP) and Supply Network Planning (SCM-SNP). These components are used to plan and manage inventory levels based on the forecast horizon set in SCM-FRE.