Demand forcasting

[Former Member]

Can any body provide me the Demand forecasting reading material and some secnarios where it is useful.

Points will be rewarded.

Thanks in advance.

[Former Member]

hI

Position of Demand Mgt in the Supply Chain Locate the document in its SAP Library structure

The function of Demand Management is to determine requirement quantities and delivery dates for finished products assemblies. Customer requirements are created in sales order management. To create a demand program, Demand Management uses planned independent requirements and customer requirements.

To create the demand program, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product.

Using these strategies, you can decide if production is triggered by sales orders (make-to-order production), or if it is not triggered by sales orders (make-to-stock production).You can have sales orders and stock orders in the demand program. If the production time is long in relation to the standard market delivery time, you can produce the product or certain assemblies before there are sales orders. In this case, sales quantities are planned, for example, with the aid of a sales forecast.

[Former Member]

hi

in simple terms demand forecasting is nothing but.. studying the business periodically and anlyzing the demand for the product in the future, accordingly manufacturing products.. depend on the forecast by the business people..

acccording to some popular net content.. ...

A demand model is a representation of the relation between any demand influencing factor (DIF) and consumer consumption. This model is created from historical data (consumption and DIF data). The representation must be chosen such that given the knowledge on the future DIF occurrences or evolution, consumption data can be predicted. The most important DIFs are Price, Promotion, Assortment and Space. The Demand Model serves as a common base for planning and optimization applications on top, like price & promotion planning & optimization, assortment and space planning and optimization. Further, this Demand Model is the source of a central Demand Forecast, which can be leveraged by multiple planning and replenishment applications.

for more info refer to the links below..

http://supplychain.ittoolbox.com/lp/lp.asp?i=713

http://erp.esworkplace.sap.com/socoview(bD1lbiZjPTgwMCZkPW1pbg==)/smdisplay.asp?id=91039F49E53F11D38...

http://www.sapbizinsights.com/04_2007/valogix.html

http://www50.sap.com/businessmaps/4DF02062CF34410FB9B15C5956E01DC3.htm

http://www50.sap.com/businessmaps/6F513DA08AA44098BD1F7BA7999C4C01.htm

senerios..

say for instance seasonal products manufacturers, usually forecast the business demand comparing to the previous yrs sales, during that season..based on those numbers, the current yrs production is forecasted..

hope noe u can get some business senerios by urself..

the concept is basically to pre-judge the demand for the product well before in time.. finally any businesses target is to reach the customer and make a mark in the market.. to be ahead in the market demand forecasting plays a much needed role in the business process..

Reward if Useful

Thanx & Regards..

Naren..

[former_member396676]

This link may be useful

http://help.sap.com/saphelp_47x200/helpdata/en/cb/7f936943b711d189410000e829fbbd/content.htm

Vrajesh