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SAP F&R: Negative impact on forecast

Former Member
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Hi,

One of our clients wants to reduce the demand forecast generated by SAP F&R so as to generate a lower quantities of products in the order proposals which are being generated.

I was thinking more about using the Demand Influencing factor (DIF) in this case, but as a negative value to generate the lower demand forecasts. But, I cannot get to include a -ve DIF value in any of the standard DIF types present in the system. Also, the scaling factor parameter is not editable. Can anybody guide me on this particular issue.

Best Regards

Prashant Kedare

1 ACCEPTED SOLUTION

Former Member
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You can use following DIF:

DIF Identifier COR Correction DIF

DIF Type C Correction Factor

Enter a DIF Value less than 1 (say 0.8) if you want to reduce the forecast by 20 %.

..Mayank

View solution in original post

3 REPLIES 3

Former Member
0 Kudos

You can use following DIF:

DIF Identifier COR Correction DIF

DIF Type C Correction Factor

Enter a DIF Value less than 1 (say 0.8) if you want to reduce the forecast by 20 %.

..Mayank

0 Kudos

Hello Prashant,

it would be interesting to hear for me, why the customer would like to reduce the forecast? Typically the forecast should provide numbers which shall allow to meet the demand and at the same time not result into stock overages, and so far we had excellent results in that area.

In case the forecast is actually to high, there might be multiple reasons for that and I would recommend to find the root cause first, and then tweak parms (e.g. service levels) accordingly. This might yield better and more exact results than just applying a global corrective DIF.

I can also imagine scenarios in which the forecast is quite accurate but replenishment quantities are absolutely too high due to pack size rules. That would be more of a business process which might be adapted .... So multiple reasons may apply, and I am really interested to know what kind of issue they do have?

Thanks and best regards,

Laura

0 Kudos

Hi Laura,

Sorry for the delay in response. I agree with your statement on need for the reduction of forecast. This has been primarily been done since the customer has been using wrong DIF identifiers for promotions/fliers which had been causing a lot of problems in the forecast which was being generated.

Also, the consumption data which was being maintained in the system was not accurate and was subject to subsequent modificaations manually or via interfaces at regular intervals.

After correcting these issues, we have been able to get excellent results in forecasts and hope that the business continues to use the prescribed mechanism of SAP F&R

Best Regards

Prashant Kedare