What is forecasting error in SAP SRD-SCM-DP - SCM-Demand Planning?

SAP Term: forecasting error

• Component: SRD-SCM-DP

• Component Name: SCM-Demand Planning

• Description: The difference between the forecasted demand and the actual demand for a given period. It may be expressed as a percentage or an absolute figure.

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• Key Concepts: 
  Forecasting error is a measure of the difference between the forecasted demand and the actual demand for a product or service. It is used to assess the accuracy of a forecast and to identify areas for improvement. In SAP, forecasting error is calculated using the Demand Planning (DP) component of Supply Chain Management (SCM). 
  
  How to use it: 
  In SAP, forecasting error is calculated by comparing the forecasted demand with the actual demand. This comparison can be done manually or automatically using the Demand Planning (DP) component of Supply Chain Management (SCM). The DP component allows users to set up a forecasting model and then compare the forecasted demand with the actual demand. The difference between these two values is then used to calculate the forecasting error. 
  
  Tips & Tricks: 
  When calculating forecasting error in SAP, it is important to ensure that the forecasted demand and actual demand are both based on the same time period. This will ensure that any discrepancies between the two values are accurately reflected in the forecasting error calculation. Additionally, it is important to use an appropriate forecasting model when calculating forecasting error in SAP. This will ensure that the results are as accurate as possible. 
  
  Related Information: 
  For more information on forecasting error and how to calculate it in SAP, please refer to the official SAP documentation on Demand Planning (DP) component of Supply Chain Management (SCM). Additionally, there are many online resources available that provide further information on forecasting error and how to calculate it in SAP.