Forecast Model Selection in APO Demand Planning

[Former Member]

Widely used forecast model in Demand Planning and is it industry specific or

or Product specific or ..?

Scenario/Industry in which we need to use specific forecasting model.

Thank you !

Manish

[Former Member · Accepted solution]

Forecast model selection is based on the historical data of the product or the product family. Before selecting the forecast model for a product, the historical data is analyzed based on various factors like the dependencies, seasons etc and the results of these analysis are represented graphically. these graphical representations compared with the standard forecast patterns like seasonal model, constant model etc and thus the forecasting model is selected.

I am not sure if a particular forecasting model is widely used in DP. I believe the model is selected based on the history data.

[Former Member]

Hi Manish,

Selection of Forecasting Models are totally based on History of the Products. It is not Industry Specific. For choosing Forecast Model, you have evaluate last more that 2 years data. So that you can use Constant,Trend,Seasonal & combination of one of these models. Forecast is not showing always correct values,becz lot of Parameter affect on forecast. We are using forecast for giving Planning Direction for the Product.

Hope this will help you.

Regards

Sujay