Forecast is low - How can we improve the forecast

[Former Member]

Hi,

the forecast that is calculated in R/3 is low.

How can we improve the forecast?

Would you suggest to implement Demand Planning?

What are your experiences regarding the forecast?

Kind Regards,

Michael

[Former Member · Accepted solution]

Hi,

Can you please elaborate your question on forecast as forecast is mainly depends on your sales history. So,if your forecast is low means you have sales history of lower value or you have fewer history data.

Thanks,

Dipankar

[Former Member]

A point that could be affecting your forecast results is the historical period considered. Specially if you experience strong seasonality with trends (either growth or recession or both). In this case you should have at least twice the seasonality in periods (if you use monthly data, at least 25 months). This usually corrects most cases.

Also, if your market dynamics are changing this will affect your results significnatly for at least a small period of time.

As you can see, there could be a few reasons why. If you could provide a few more points maybe I could help you further.

Rodrigo

[somnath_manna]

Forecast is low in R/3 does not necessarily mean APO DP can get you correct forecast as the underlying Forecasting Models are same in R/3 and APO DP. If your History data is incorrect then Forecast generated based on that timeseries will also be incorrect. Garbage in = garbage out - switching from R/3 Demand Management to APO DP will not help much.

Please look into the SCM Wiki space and/or Building Blocks available in help.sap.com for DP config.

Thanks,

Somnath