What is location split factor in SAP SCM-IBP-DM - Demand?

SAP Term: location split factor

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A figure that determines how planned promotion values are broken down to locations. Location split factors are typically product specific, but they may depend on additional attributes, such as customer region, as well.

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• Key Concepts: 
  Location split factor is a feature in SAP's Demand Planning component of the Supply Chain Management - Integrated Business Planning (SCM-IBP) suite. It allows users to divide a single demand plan into multiple locations, allowing for more accurate forecasting and planning. 
  
  How to use it: 
  Location split factor can be used to divide a single demand plan into multiple locations. This allows users to create more accurate forecasts and plans based on the different locations. To use the location split factor, users must first define the locations they want to split the demand plan into. Then, they can assign a weighting factor to each location, which will determine how much of the total demand plan will be allocated to each location. 
  
  Tips & Tricks: 
  When using the location split factor, it is important to consider the different factors that may affect demand in each location. This includes factors such as seasonality, customer preferences, and local market conditions. By taking these factors into account, users can create more accurate forecasts and plans for each location. 
  
  Related Information: 
  The location split factor is just one of many features available in SAP's Demand Planning component of SCM-IBP. Other features include demand forecasting, inventory optimization, and supply chain analytics. All of these features can help users create more accurate forecasts and plans for their business.