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Former Member

Outlier correction, forecast IS Retail

Hi all,

Is there a way to "activate" outlier correction within IS retail?

We are using a fairly simple constant smoothing algorithm which is OK for small sales variances but large spikes in consumption continue to cause a problem, especially with a large number of articles/sites (retail).

Many thanks,

Gert-Jan

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2 Answers

  • Best Answer
    Posted on Aug 21, 2007 at 04:18 AM

    Hi Gert-Jan,

    Outlier correction is one of the Forecast Strategies in SAP.

    "Outliers“ are a typical values that cannot be explained by the forecast model that is being used. The results of the forecast can be heavily influenced by outliers.

    The system is able to identify and replace outliers in the historic data. To do this the forecast procedure calculates forecast values in the past period and compares them to the observed values. If the difference (the residual) exceeds a specific value, the observed value is replaced by the ex-post-forecast value for the corresponding point in time. After this correction, the forecast calculation is performed again with the amended historic data.

    For more details, check out following link;

    http://help.sap.com/saphelp_nw04/helpdata/en/a4/42e03fc2269615e10000000a155106/content.htm

    Bye,

    Muralidhara

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    Former Member
    Posted on Aug 21, 2007 at 04:29 AM

    Hi Marulidhara,

    Thanks for that. I can't activate this through a forecast profile (MP80) in MM (consumption based planning). Is this functionality that can be used in MM at all? Or is it more specific to other modules?

    Thanks,

    Gert-Jan

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