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

SAP Term: forecasting parameter

• Component: SRD-SCM-DP

• Component Name: SCM-Demand Planning

• Description: A quantifiable variable used in combination with a forecasting model to predict future demand. An example of a forecasting parameter would be the sigma factor used in the moving average forecasting model.

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• Key Concepts: 
  Forecasting parameters are used in SAP Demand Planning to define the forecasting method and the parameters used for the forecasting calculation. The forecasting parameters are used to define the forecasting method, the number of periods to be forecasted, the number of periods to be used for the forecast calculation, and other settings. 
  
  How to use it: 
  To use forecasting parameters in SAP Demand Planning, you must first create a forecasting profile. This profile contains all of the settings for the forecasting calculation, including the forecasting method, the number of periods to be forecasted, and other settings. Once you have created a forecasting profile, you can then assign it to a demand planning area. This will enable you to use the forecasting parameters in that area. 
  
  Tips & Tricks: 
  When creating a forecasting profile, it is important to consider the data that will be used for the forecast calculation. Different data sources may require different settings in order to produce accurate forecasts. Additionally, it is important to consider how often the forecast should be updated and how many periods should be included in the forecast calculation. 
  
  Related Information: 
  For more information on using forecasting parameters in SAP Demand Planning, please refer to SAP Help documentation on “Forecasting Parameters” (https://help.sap.com/viewer/product/SRD-SCM-DP/SCM-Demand_Planning/en-US). Additionally, there are several online tutorials available that provide step-by-step instructions on how to use forecasting parameters in SAP Demand Planning.