What is forecast horizon in SAP SRD-SCM-DP - SCM-Demand Planning?

SAP Term: forecast horizon

• Component: SRD-SCM-DP

• Component Name: SCM-Demand Planning

• Description: The amount of time extending into the future covered by a demand plan.

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• Key Concepts: 
  Forecast horizon is a term used in SAP Demand Planning (SRD-SCM-DP) to refer to the length of time for which a forecast is made. It is the period of time for which the forecast is valid and can be used to plan for future demand. The forecast horizon can be set to any length of time, from a few weeks to several years. 
  
  How to use it: 
  The forecast horizon is set in the SAP Demand Planning system. It can be adjusted depending on the needs of the business. For example, if a business needs to plan for seasonal demand, they may set the forecast horizon to cover several months or even a year. On the other hand, if a business needs to plan for short-term demand, they may set the forecast horizon to cover only a few weeks. 
  
  Tips & Tricks: 
  When setting the forecast horizon, it is important to consider both short-term and long-term needs. Short-term forecasts are useful for planning immediate demand, while long-term forecasts are useful for planning future demand. Additionally, it is important to consider how often the forecast should be updated. If the forecast horizon is too short, it may not provide enough information for accurate planning; if it is too long, it may not reflect changes in demand quickly enough. 
  
  Related Information: 
  SAP Demand Planning also includes other features such as forecasting algorithms and statistical models that can be used to generate more accurate forecasts. Additionally, SAP Demand Planning can be integrated with other SAP systems such as SAP ERP and SAP SCM for more comprehensive planning capabilities.