What is multiplicative seasonality in SAP SCM-IBP-DM - Demand?

SAP Term: multiplicative seasonality

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A model that defines seasonal variation in terms of multiplied values. For example, the demand for oranges in December is 2.5 times the average demand.

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• Key Concepts: 
  Multiplicative seasonality is a forecasting technique used in SAP's Demand Planning component of the Supply Chain Management-Integrated Business Planning-Demand Management (SCM-IBP-DM) suite. It is used to predict future demand based on past seasonal patterns. It takes into account both the seasonal pattern and the underlying trend of the data. 
  
  How to use it: 
  Multiplicative seasonality can be used to forecast future demand by taking into account both the seasonal pattern and the underlying trend of the data. To use this technique, you will need to input historical data into the Demand Planning component of SCM-IBP-DM. The system will then analyze the data and generate a forecast based on the multiplicative seasonality model. 
  
  Tips & Tricks: 
  When using multiplicative seasonality, it is important to ensure that your historical data is accurate and up-to-date. Additionally, it is important to consider any external factors that may affect future demand, such as changes in consumer preferences or economic conditions. 
  
  Related Information: 
  For more information on multiplicative seasonality and other forecasting techniques, please refer to SAP's official documentation on Demand Planning in SCM-IBP-DM. Additionally, there are many online resources available that provide further information on this topic.