What is lumpy demand in SAP SCM-IBP-DM - Demand?

SAP Term: lumpy demand

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: Intermittent time series in which relatively large deviations can be observed. Time series analysis identifies a time series as lumpy if periods with large volume spikes are followed or preceded by periods of low or zero volume. For example: Jan Feb Mar Apr May June 0 12 10 0 0 24

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• Key Concepts: 
  Lumpy demand is a term used in supply chain management to describe demand that is highly variable and unpredictable. It is characterized by large, sudden spikes in demand that are difficult to predict and plan for. This type of demand can be caused by a variety of factors, such as seasonal changes, promotional activities, or unexpected events.
  
  How to use it: 
  In SAP's Demand Management component of the Integrated Business Planning (IBP) suite, lumpy demand can be managed by using advanced analytics and forecasting tools. These tools can help identify patterns in the data and provide insights into potential causes of the lumpy demand. Additionally, they can be used to create more accurate forecasts and better manage inventory levels.
  
  Tips & Tricks: 
  When dealing with lumpy demand, it is important to have a good understanding of the underlying drivers of the demand. This can help you better anticipate and plan for future spikes in demand. Additionally, it is important to have a good understanding of your supply chain and how it can be optimized to better manage lumpy demand.
  
  Related Information: 
  For more information on managing lumpy demand in SAP's Demand Management component of IBP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SCM_IBP_DM/latest/en-US/f9f8d7a2b3e14c8a9f3d7c2b6f5e4d1a.html