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  Prerequisites for Declining Demand Forecast

If you want to run the forecast for a location product with the forecast model " Declining Demand Forecast ", the system first checks whether the location product is suitable for this model.

A location product is suitable for the forecast model "Declining Demand Forecast" if it fulfills all of the following prerequisites:

  • Historical data is available for at least the number of historical periods that you entered in the forecast profile on the tab page General in the field Historical Periods.

    You get to the forecast profile on the SAP Easy Access screen under Start of the navigation path Advanced Planning and Optimization Next navigation step Service Parts Planning (SPP) Next navigation step Planning Next navigation step Forecasting Next navigation step Forecast Profile End of the navigation path .

  • The forecast value for the demand of the current period is greater than zero.

  • The location product is not labelled as a new product.

    To see if a location product is labeled as a new product, look in the product master data on the tab page Properties of SPP.

  • In the forecast profile on the tab page General in the field Type of Restricted Forecast Change you have not selected the entry Adaptive Increase.

  • The demand flow of the location product is declining.

    The demand flow is deemed to be declining if the demand of the current year is smaller than the demand of the previous year, and if the demand of the previous year is smaller than the demand of the year previous to that.

  • The demand flow of the location product is not V-shaped.

    The demand flow is deemed to be V-shaped if , in the year before last, it was greater than last year, but in the current year is equal to or greater than last year.

  • The demand flow shows no current upward trend.

    A current upward trend is present if all of the following conditions are met:

    • Demand (last half year) > Demand (half year previous to last) * x

      You define x in the forecast profile on the tab page Model Selection in the field Demand Multiplier in Declining Demand Forecast Model.

    • The demand of the first half year of the current year is greater than zero.

    • The demand flow is declining.

  • At least one of the following conditions does not apply:

    • The demand of the first half year of the current year is zero.

    • The demand flow is declining.

    • In each of the last 3 periods there was at least one demand occurence.