What is additional demand horizon in SAP SCM-IBP-DDP - IBP Demand Driven Planning?

SAP Term: additional demand horizon

• Component: SCM-IBP-DDP

• Component Name: IBP Demand Driven Planning

• Description: A period of time that is used to extend the lead time horizon. The additional demand horizon ADH is used in phase-in scenarios to create the first DDMRP pull order more than one decoupled lead time DLT before the first buffer. Normally, the first buffer is created around the time the first average daily usage ADU is calculated. In this scenario the pull order can occur one DLT plus ADH in advance, instead of occurring only one DLT in advance.

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• Key Concepts: 
  Additional Demand Horizon (ADH) is a feature of SAP's Integrated Business Planning (IBP) Demand Driven Planning (DDP) component. It is used to extend the planning horizon of a demand plan beyond the current period. This allows for more accurate forecasting and planning of future demand. 
  
  How to use it: 
  ADH can be used to extend the planning horizon of a demand plan beyond the current period. This can be done by setting the ADH parameter in the IBP DDP configuration. Once set, the ADH will be used to calculate the forecast for future periods. 
  
  Tips & Tricks: 
  When setting the ADH parameter, it is important to consider the length of time that is needed to accurately forecast future demand. The longer the ADH, the more accurate the forecast will be. However, it is also important to consider how often the ADH needs to be updated in order to keep up with changing market conditions. 
  
  Related Information: 
  For more information on using ADH in SAP IBP DDP, please refer to SAP's official documentation on Demand Driven Planning. Additionally, there are many online resources available that provide tips and tricks for using ADH in SAP IBP DDP.