APO DP - calc of proportional factors

[Former Member]

I am using APO DP V5.

In transaction /SAPAPO/MC8V, one can calculate proportional factors based on a specified history key figure.

So, for example, we have a product sold to various customers; if we forecast at the overall product level, the forecast will be disaggregated based on the calculated factors.

But suppose one is <u>also</u> using lifecycle planning, and the product history is actually derived from various LIKE profiles.

Does transaction /SAPAPO/MC8V take the history derived from LIKE profiles into account?

Thanks,

Bob Austin, Atos Origin

[Former Member · Accepted solution]

Ciao Bob,

<u>Assumption</u> - The logic considered for calculating Proportional factor is based on past History.

The past history is based on actual performance of any customer. Hence if we are using Life cycle planning with Like Profile then it is better if we use running 'No Forecast' for the products so that Proportional Factor run will not affect forecast for those products in future horizon or else the FCST will be planned considering the proportional factor.

Thanks and regards,

Girish Naik

[Former Member · Accepted solution]

Hi Girish,

So if I understand your explanation, it is a two step process when you use a Like Profile in Life cycle Planning.

1. First create the like profile in life cycle planning with no disaggregation for that key figure. This ensures that the proportional factors are calculated.

2. Then change the disaggregation to one of the regular methods(S,P,A,I or D) and rerun the forecast for life cycle planning?

I am a little confused here. Please explain.

Thanks.

[Former Member · Accepted solution]

Hi Visu,

The logic to calculate proportional Factor is based on past customer sales performance, calculate the proportions in future in terms of 100% broken down e.g. For 5 customers as 30%,25%,20%,15% ....total is 100%.

Now, the question which Bob asked was using transaction SAPAPO/MC8V will consider the sales history referring to Like Profile. The answer is 'Yes'.

Hence i suggested the solution as,

1. Run the proportionate factor

2. Run No FCST for these selected SKU's so that future FCST will not get plan based on calculated proportional factor.

Hope this clarifies.

[srinivas_krishnamoorthy]

Bob, in order to have LC being taken into account, you should probably calculate the Proportional Factors on Corrected History instead of Raw history. Dont think calculating on History will take the LC settings into account. The downside though is that Corrected History may be different from Raw History due to outlier corrections as well, which is something you should be wary off. Maybe you can have a two step correction -

Step 1) Account for LC by coming up with Corr Hist1 from Raw History

Step 2) Account for Outliers by coming up with Corr Hist2 from Corr Hist1

Finally you may calculate Prop Factors on Corr Hist1.