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Former Member
May 12, 2010 at 06:06 PM

Composite Profile

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I am attempting to get some clarity on the logic of the Composite Profile. In the Foti Chimni text entiteled "Demand Management with SAP". part of the composite definition goes on to state that the underlying objective is to take advantage of the strenghts of each model to create a single one number forecast. either by averaging the forecats, giving each one equal weight , or one can weight each one differently. My company was under the assumption that the composite model will choose the "best fit univariate profile" based on lowest MAPE ect. Is this assumption correct? I just want to clarify what SAP means by averaging the forecast if equal weight is given to each univariate model within the Master composite profile