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Test phase in statistical forecasting for IBP 1802.

Apr 11 at 04:02 AM

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Hello,

With IBP version 1802, SAP announced splitting of the historical horizon into a "training phase and a test phase".

The documentation says:

"The training phase is used by the system to train the various algorithms in your forecast model based on the ex-post forecast, while the test phase is reserved to assess the prediction accuracy of each algorithm (that is, their forecast accuracy in the historical horizon).

As a result of this separation, real predictions (and not ex-post forecasts) are compared with the historical sales data. Therefore, the system can more reliably choose the algorithm that calculates the best forecast."

The functionality and language here seems to be out of a Machine Learning text. I wonder what is the system doing internally different than before. What are the "Real Predictions" that is compares with historical sales data? How are the values different than the ex-post forecast?

Any ideas anyone? Any pointers to documentation on the math involved?

Regards,

Shivaditya Singh

Link:

https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/1802/en-US/65b1da1c2630409885b96c4eec9b61d0.html

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