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No Forecast with Simple linear regression method

Former Member
0 Kudos

Hello Friends,

I have 1 material with history of 36 months and I want to forecast for next 18 months. when I use the Simple linear regression model, I am not able to get forecast at all.

Outlier correction is not used. when I use the outlier correction in interactive planning and try to run the forecast, I get the forecast. But as they are using this Simple Linear regression method for bunch of materials and all the other materials are getting correct forecast, I need a proper explanation to give why this technique is not working for this particular material.

As I am new to APO, can anyone explain how this Simple linear regression method works? Also when tried in library and net, I didnot find any document on how the forecast is calculated for linear regression.

Thanks in advance for your help.

Regards

Sameer

Accepted Solutions (1)

Accepted Solutions (1)

sameer_karbotker
Explorer
0 Kudos

Hi Sameer,

When you run Stat Forecasting interactively you can check in Tab 'Messages' for detail reasons why it failed to forecast.

Possible reasons why failed to forecast.

1] In SImple Linear Regression, it tries to draw a Line which is a best fit to existing data.... which passes through max data points. Here we have test called R-Square test and if it is below Limit set then R Square test failes .

2] Check if Ex- Post Forecast is negative. If so then forecasting will fail.

3] Check if you have enough history points.

Hope this helps,

Regards,

Sameer

Answers (1)

Answers (1)

Former Member
0 Kudos

The issue is solved. the history was not enough for the forecast as rightly said by sameer.

We got the reply from Sap regarding this issue.

Thanks a lot for your time and assistance.

Regards

Sameer