Forecast Calculation

[Former Member]

Dear SAPper,

I am implementing forecast in my client.

My client keep asking about how the forecast calculating the figure.

I had looked for the calculation base on SAP help, but it seem i don't get the clue how SAP calculate it.

http://help.sap.com/saphelp_46c/helpdata/en/a5/6320e843a211d189410000e829fbbd/content.htm

Can you give me some clue about how SAP calculate forecast.

best regards,

Freddy Ha

[Former Member · Accepted solution]

The link you include is SAP's forecasting formulae and if you don't understand the terms and formulae then I suggest you try this book ...

Forecasting (3rd Ed.) (Hardcover)

by Spyros G. Makridakis (Author), Steven C. Wheelwright (Author), Rob J. Hyndman (Author)

... or find a local course (non-SAP one) on the topic of sales forecasting.

You might also find this link useful ... http://www.forecastingprinciples.com/defined%20terms.html

SAP applies forecasting formulae of our choosing according to choices of model and values of the alpha, beta, gamma, delta factors (or these can be calculated by the system as you choose) and choices made in other fields in the forecasting view of the material master. The way SAP does the calculations is per the textbooks on sales forecasting and if you want to be able to explain these then you need to learn from a non-SAP software course on sales forecasting of from a book like Makridakis et al above.

Regards, Richard

[Former Member · Accepted solution]

Hi richard,

thx for your reply,

according to your experience, should we know the calculation.

it seems like statistical stuff not PP stuff.

What is your opinion about this?

Best regards,

Freddy

[Former Member · Accepted solution]

Hi Freddy,

Just my views:

Please have an understanding of the models before implementing the same. As the type of model selected, the parameters maintained has an impact on the calculated figure. Also the selection of the model depends on the type of product & its characteristics.

As suggested above, study through some forecasting books to have a better understanding if the SAP help documentation is not helpful for you. And yes Forecasting is an integral part of Production Planning.

Regards,

Vivek

[Former Member · Accepted solution]

Hi,

Thanx for the advice.

I will go throgh that book

Good day.

Best regards,

Freddy Ha