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

SAP Term: forecasting model

• Component: SRD-SCM-DP

• Component Name: SCM-Demand Planning

• Description: A mathematical algorithm used to create a statistical forecast.

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• Key Concepts: 
  A forecasting model is a mathematical tool used to predict future demand for a product or service. It is used in SAP's Demand Planning component of the Supply Chain Management (SCM) module. The forecasting model takes into account historical data, current trends, and other factors to generate an accurate prediction of future demand. 
  
  How to use it: 
  The forecasting model can be used to create a forecast for a specific product or service. This forecast can then be used to plan production, inventory levels, and other aspects of the supply chain. The model can also be used to compare different scenarios and make decisions about which one is most likely to result in the desired outcome. 
  
  Tips & Tricks: 
  When using the forecasting model, it is important to ensure that the data being used is accurate and up-to-date. Additionally, it is important to consider external factors such as economic conditions and customer preferences when creating the forecast. 
  
  Related Information: 
  For more information on SAP's Demand Planning component, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SRD-SCM-DP/latest/en-US