forecast based on price in DP

[Former Member]

Hi Experts,

My customer is looking for a demand planning process when forecasted volume is depending on a future (seperately calculated) prices of the products.

Is it possible to achieve using APO DP?

Thanks,

Artashes

[Former Member · Accepted solution]

Artashes

If the product's sales volume has a high correlation to its price (as identified by its 'Price elasticity of demand') and if you have sufficient history of both variables (price and volume), then you could use Multiple Linear Regression (MLR) within DP to forecast volume based on 'forecasted' price.

There is an introduction to MLR in APO DP here -

http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/48d460ea-0b01-0010-039e-d995027c3a85

Rishi Menon

[Former Member · Accepted solution]

Thanks, solved the question.