forecast models

[Former Member]

Hi  experts,

Can any one explain what is us of generating univarite forecast  and why we will give horizon (like months 32 )

thanks,

Sravani

[alok_jaiswal · Accepted solution]

Hi Sravani,

Univariate forecasting are nothing but time series models where we believe that demand follows certain repeating patterns.

The primary time series components are level, trend, seasonality, and random fluctuation or error.

These patterns are usually combined in a model. It is basically pattern matching of data that are distributed over time. For this reason, you tend to need a lot of data to be able to capture the components or patterns. That is why we give history horizon where old data range can be used by models to analyze the pattern and forecast the demand values in future.

This is high level definition and usage of Univariate Forecasting Models. You can find more details below too -

Forecast Strategies - Univariate Forecasting - SAP Library

Hope it helps.

Regards,

Alok