What is Croston TSB method in SAP SCM-IBP-DM - Demand?

SAP Term: Croston TSB method

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A variant of the Croston method forecasting algorithm. Both methods can be used to predict the demand for products with intermittent time series and both handle such data by calculating the demand and the length of the intervals between the periods with demand. They differ as follows: The Croston method smoothes the demand values and the intervals using one user-defined coefficient. The Croston TSB method smoothes the demand and the probability of demand in each period using two different user-defined coefficients. It then determines the length of the intervals by taking the reciprocals of the probability values.

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• Key Concepts: 
  The Croston TSB method is a forecasting technique used in SAP's Supply Chain Management - Integrated Business Planning - Demand Planning (SCM-IBP-DM) component. It is a time series forecasting method that uses a combination of exponential smoothing and the Croston method to generate forecasts. The Croston TSB method is designed to handle intermittent demand, which is demand that occurs at irregular intervals. 
  
  How to use it: 
  The Croston TSB method can be used in SAP's SCM-IBP-DM Demand Planning component by selecting the "Croston TSB" option in the forecasting settings. Once selected, the user can enter the desired parameters for the forecast, such as the smoothing factor and the number of periods to forecast. The user can also select whether to use a single or multiple exponential smoothing methods. 
  
  Tips & Tricks: 
  When using the Croston TSB method, it is important to select the appropriate parameters for the forecast. The smoothing factor should be set to a value that reflects the expected level of accuracy for the forecast. Additionally, it is important to select an appropriate number of periods for the forecast, as this will determine how far into the future the forecast will extend. 
  
  Related Information: 
  For more information on using the Croston TSB method in SAP's SCM-IBP-DM Demand Planning component, please refer to SAP's official documentation on forecasting methods. Additionally, there are many online resources available that provide detailed explanations of how to use this forecasting technique.