What is slope dummy in SAP SCM-IBP-DM - Demand?

SAP Term: slope dummy

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A system-generated independent variable used by the multiple linear regression algorithm to predict the future values of a trend and calculate a forecast for the future that takes the trend into consideration. The algorithm looks for a coefficient to multiply the values of the dummy variable with, thus getting results that are as close to the historical values as possible. The values of the slope dummy variable form a 45-degree slope in a chart in which axis ‘x’ contains the time periods and axis ‘y’ contains time series values for an input key figure.

Smart SAP Assistant

• Key Concepts: 
  Slope dummy is a feature in SAP's Demand Management component of the Supply Chain Management (SCM) - Integrated Business Planning (IBP) suite. It is used to create a linear slope between two points in a demand plan. This allows for more accurate forecasting and better decision-making. 
  
  How to use it: 
  To use the slope dummy feature, you must first create a demand plan. Once the plan is created, you can add a slope dummy by selecting the two points you want to connect with a linear slope. You can then adjust the slope of the line to fit your needs. 
  
  Tips & Tricks: 
  When using the slope dummy feature, it is important to remember that it will only create a linear slope between two points. If you need to create a more complex shape, you will need to use other features such as trend lines or seasonality. 
  
  Related Information: 
  For more information on SAP's Demand Management component of SCM-IBP-DM, please visit the official SAP website at https://www.sap.com/products/scm-ibp-demand-management.html.