APO - Aggregate Forecasting and Best Practices

[Former Member]

I am interested in options to save time and improve accuracy of forecasts in APO Demand Planning. Can anyone help me by recommending best practices, processes and design that they have seen work well?

We currently forecast at the Product level (detailed). We are considering changing that to the Product Family level. If you have done this, please reply.

[Former Member · Accepted solution]

Hi Dan,

Yes, you can do this if your family shows a historical pattern and the product proportion can be adjusted easily in the time.

When you run a forecast in at aggregate level you need to trust in your proportions, so you have to model your proportion calculation and know if is better to you run a detailed or a fixed proportional factor.

I hope this can help you.

Regards.

Marín.

[Former Member]

hey dan....

howdy?

there was a discussion which, though is not exactly what you asked, i think is a little relevant. Also there is a matrix that is linked in the last post of this thread that you might find helpful

regards

harish

[Former Member]

Hello Dan -

Doing it at the Product level is very detailed (but it depends on the number of SKU's Available and that are to be forecasted).

Here for me on my project we have about sample size 5000 finished goods to start with and forecasting at that minute level wont help. For me i have classified a product group level where i have linked all the similar FGs. tht way when you are working with the product group you are able to be a little from assertive in your forecasting. After that you can use proportional factors that will help you in allocating the necessary forecast down to product level. This way you are happy as well as the management is happy (high level report) as they dont have to go thru all the data that is not even necessary for them to see.

Hope this helps.

Regards,

Suresh Garg