master forecast profile

[Former Member]

difference between univariate,mlr,and composite ??

[digambar_narkhede · Accepted solution]

Hi Srinivasa,

Univariate and Composite forecasting methods are time series and/or judgemental methods whereas MLR is a causal model.

Univariate forecasting : allow you to forecast based on time series patterns like Constant,Trend,Seasonal demand,Seasonal trend,Intermittent demand,No change from previous year.

Multiple linear regression (MLR) :can be used to analyze the relationship between a single dependent variable and several independent variables .For example, you can gauge what price point you need to hit in order to reach a particular sales volume.here you need to decide which variables to examine from the business process.

Composite Forecasting : combines forecasts from alternative forecasting methods of above.The objective is to take advantage of the strengths of each method to create a single "one number" forecast.

Actually this is to vast to explain in few words here, you can refer the below link to have clear idea..

[difference between univariate,mlr,and composite |http://help.sap.com/saphelp_scm41/helpdata/en/8f/9d6937089c2556e10000009b38f889/frameset.htm]

Hope this gives some insights.

Regards ,

Digambar

[Former Member]

thanks mr.somnath and mr.digamber

[somnath_manna]

Hi Srinivasa,

I hope you have gone through the APO Application Help for Forecast Profiles which explains your question. If not I urge you to go through the link [here|http://help.sap.com/saphelp_scm41/helpdata/en/ef/e26dde32e811d398280000e8a49608/frameset.htm]. If you still have specific questions feel free to post in this forum. To explain in short - Statistical Forecasting has two main methodologies - one TimeSeries based also called Univariate methods and the other based on Causal Analysis or Multi-Linear Regression methods. Composite is a combination (with weights) of different Univariate and MLR methods.

Also I request you to review the [APO Wiki|https://wiki.sdn.sap.com/wiki/display/SCM/AdvancedPlanningOptimization] and [SCM BPX|https://www.sdn.sap.com/irj/sdn/bpx-scm]. In the second link (SCM BPX) look into Demand Planning link under Key Topics. It has links to some good articles on Statistical Forecasting.

On another note it is a good practice to seach for your questions on the Forum before submitting a new thread. Already many of the topics you posted questions on have been discussed. And please close threads (after assigning points suitably) once they have necessary responses.

Regards,

Somnath