What is promotion sales lift elimination in SAP SCM-IBP-DM - Demand?

SAP Term: promotion sales lift elimination

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A preprocessing algorithm used for demand planning. This algorithm uses a statistical formula to identify unusually high sales values that are associated with promotions and removes them from the sales history before the demand forecast is calculated. The goal is to prevent distortions in the forecast.

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• Key Concepts: 
  Promotion sales lift elimination is a feature of SAP's Demand Planning component of the Supply Chain Management - Integrated Business Planning (SCM-IBP-DM) suite. It allows users to identify and eliminate the sales lift associated with promotional activities from the demand forecast. This helps to ensure that the forecast is based on underlying demand and not on promotional activities. 
  
  How to use it: 
  To use promotion sales lift elimination, users must first identify the promotional activities that are impacting the demand forecast. This can be done by analyzing historical data and identifying any spikes in sales that are associated with promotional activities. Once these activities have been identified, users can then adjust the demand forecast to eliminate the sales lift associated with these activities. 
  
  Tips & Tricks: 
  When using promotion sales lift elimination, it is important to remember that it is only effective if the promotional activities are accurately identified. Therefore, it is important to take the time to analyze historical data and identify any spikes in sales that are associated with promotional activities. Additionally, it is important to remember that this feature only eliminates the sales lift associated with promotional activities and does not account for any other factors that may be impacting the demand forecast. 
  
  Related Information: 
  Promotion sales lift elimination is just one of many features of SAP's Demand Planning component of SCM-IBP-DM. Other features include demand forecasting, inventory optimization, and supply chain analytics. Additionally, SAP also offers a range of other supply chain management solutions such as supply chain visibility, supply chain planning, and supply chain execution.