How does SAP IBP take demotion into account?

[mzahmed]

Hi Experts

We would like to know if anyone has had the situation where the "demotion" of a product had to be taken into consideration. This could happen if a new or existing product, e.g. A car, is now bursting into flames due to one of its components. Due to this, my demand has lowered and I need to make adjustments so that my forecast going forward takes this into consideration. The Covid impact could be a possible use case.

We would really appreciate some insight into how this can be achieved, probably the Demand module of IBP.

Regards,

Mohammad

[satish_waghmare3 · Accepted solution]

Hello Mohammad, I am assuming you are using Statistical Forecasting in IBP Demand. If yes, you can try enabling the trend dampening and additionally, setup Phase Out profile with user defined phase out curve. This could potentially help your requirement. Please read more about this topic from SAP IBP Help. Hoping this will help. Let us know.

Thank you,

Satish Waghmare

[lingaiahvanam]

Hi,

Which level forecast demotion is to setup in demand module.

If it is product/customer or product/location level I would recommend to review final demand plan and adjust demand based on your needs.

Best Regards,

Lingaiah

[mzahmed]

Hi Lingaiah

Thank you for the response.

We have not yet designed anything. We were not sure how to approach this issue. It seems like a forecast consumption or a forecast model can be set up to to propogate that downward trend into the future? Please confirm.

I understand the manual adjustment, but can there be a more long lasting solution when such a demontion takes place across multiple products?

Thank you for entertaining this query.

Regards,

Mohammad

[revanchatraban]

Hi Ahmed,

Can you check on Driver Based Planning? You can use the particular drivers which are either increasing or decreasing your demand. The impact of drivers will be automatically considered in the consensus demand plan i.e. there are key figures available for the same purpose.

Even though driver based planning is manual activity but you plan in a structured manner by bringing the drivers into the forecast.
Thanks a lot!!!

Regards,

Revan C