What is capped sensed demand in SAP SCM-IBP-DM - Demand?

SAP Term: capped sensed demand

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A business meaning that can be assigned to demand sensing key figures. Capping means that there is a limit on potential changes to the input of demand sensing. A key figure with the 'capped sensed demand' business meaning can be used to check what was the output of demand sensing after the caps were applied.

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• Key Concepts: 
  Capped Sensed Demand is a feature of SAP's Demand Planning component of the Supply Chain Management - Integrated Business Planning (SCM-IBP) suite. It allows users to set a maximum limit on the amount of demand that can be sensed from external sources, such as sales orders, customer forecasts, and other sources. This helps to ensure that the demand planning process is not overwhelmed by external sources and that the demand plan is based on accurate data. 
  
  How to use it: 
  To use Capped Sensed Demand, users must first set up a maximum limit for the amount of demand that can be sensed from external sources. This limit can be set in the Demand Planning settings. Once this limit is set, any demand that exceeds this limit will not be included in the demand plan. 
  
  Tips & Tricks: 
  When setting up Capped Sensed Demand, it is important to consider the impact of external sources on the demand plan. If the maximum limit is set too low, it may result in an inaccurate demand plan. On the other hand, if the maximum limit is set too high, it may lead to an overly optimistic demand plan. It is important to find a balance between these two extremes when setting up Capped Sensed Demand. 
  
  Related Information: 
  For more information about Capped Sensed Demand and how to use it in SAP's SCM-IBP suite, please refer to SAP's official documentation or contact your local SAP representative.