DP concept

[Former Member]

I m new to this scm can anyone explain me the DP concept in brief .

I went through the document but not able to understand.

Can any one explain me with a business scenario.

Thanks in dvance.

[somnath_manna · Accepted solution]

Hi Kalpanashri,

Appreciate if you can visit the https://www.sdn.sap.com/irj/sdn/developerareas/bpx-scm?rid=/webcontent/uuid/240738f8-0a01-0010-4889-bd254c570cd4">dp [original link is broken] [original link is broken] under BPX Community.

Hope these will clear your doubts.

Thanks,

Somnath

[Former Member]

Dear Rajendran,

DP is basically forecasting for future, looking at past sales. DP deals with understanding the past data and forecasting. In your historical sales data, there might be seasonality, trend etc. which is captured by DP and the same is built in for the future forecast. DP uses statistical methodolgy to forecast.

Apart from capturing seasonlity, trend etc. DP also helps in incorporating some market intelligence like promotional planning (i.e. impact of discount on sales), life cycle planning (eg. decline in sales due to maturing stage of product). In business scenario, data is collected by sales people and they are people who know the pulse of the market. In DP one can take this information and also understand the historical pattern and come up with a good forecasting model.

DP also helps in infering the impact of certain factors like country's GDP growth on sales of a product (through running a regression model ).

Hope this would help.

Regards,

Tarun Jha