What is signal horizon in SAP SCM-IBP-DM - Demand?

SAP Term: signal horizon

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: The time period past or future for which the system should consider demand signals when using the demand sensing algorithm for forecasting.

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• Key Concepts: 
  Signal horizon is a feature of SAP's Supply Chain Management-Integrated Business Planning-Demand Management (SCM-IBP-DM) component. It is used to forecast future demand and supply levels based on historical data. The signal horizon is the time period for which the forecast is made, typically ranging from one to three months. 
  
  How to use it: 
  Signal horizon can be used to identify potential supply and demand imbalances in the future. It can also be used to identify trends in customer demand and adjust supply accordingly. The signal horizon can be adjusted to fit the specific needs of the business, such as seasonal fluctuations or changes in customer demand. 
  
  Tips & Tricks: 
  When setting up the signal horizon, it is important to consider the time frame that best fits the business needs. For example, if there are seasonal fluctuations in customer demand, a longer signal horizon may be necessary. Additionally, it is important to ensure that the data used for forecasting is accurate and up-to-date. 
  
  Related Information: 
  Signal horizon is just one of many features of SAP's SCM-IBP-DM component. Other features include inventory optimization, demand planning, and supply chain analytics. Additionally, SAP offers a range of other software solutions for supply chain management, such as SAP Ariba and SAP S/4HANA.