Averaging Method Based on Moving Average

The moving average distinguishes itself in the following way:

The principle of the averaging method is that SAP SNC calculates several sets of average demands from the actual demands in the average-demand horizon. It then calculates the average from these sets. For a demand set, SAP SNC divides the average-demand horizon into several time segments and averages the demands in each time segment. To do so, SAP SNC adds up the actual demands in the planning periods in a time segment and then divides the sum by the number of planning periods. The average demand of a planning period in a time segment is, therefore, the arithmetic average of the demands in this time segment.

The various demand sets are distinguished by how SAP SNC divides the average-demand horizon into the time segments from which it calculates the average in each case. In the first demand set, the first time segment is one planning period. SAP SNC divides the rest of the average-demand horizon into time segments with the same duration as the averaging period. (Depending on the duration of the average-demand horizon, the last time segment might be shorter than an averaging period.) In the second demand set, the first time segment comprises two planning periods and the rest is divided into averaging periods. In the third demand set, the first time segment contains three periods, and so on. The number of planning periods in the averaging period or in the average-demand horizon determines how many demand sets SAP SNC calculates: The number of demand sets equals the number of planning periods in either the averaging period or in the average-demand horizon, whichever is smaller. The final average demand of a planning period is the arithmetic average of the average demands in the planning period from the various demand sets. For more information, see Example: Calculation Based on the Moving Average.

Averaging Method Based on Arithmetic Average

This method is based on an arithmetic mean calculation of the actual demands. SAP SNC calculates average demand values for the planning periods in the average-demand horizon.

To determine the average demand value for one particular planning period in the average-demand horizon, SAP SNC calculates the mean average demand for a time interval whose duration is given by the averaging period and which starts with the period under consideration. SAP SNC assigns this average demand value to the period under consideration.

In the arithmetic mean calculation method, the sum of the calculated average demands is not equal to the sum of the actual demands. For more information, see Example: Calculation Based on the Arithmetic Mean Average.

Using Average Demands in Projected Stock

The formula for projected stock in SAP SNC can take account of either the actual demands or the average demands. For the projected stock to take account of the average demands, you must define a corresponding formula that uses the key figure for the average demand instead of the key figure for the actual demand. Change, for example, the default formula for the projected stock accordingly. You define the formula in Customizing for Supply Network Collaboration under  Replenishment Replenishment Planning Projected Stock Define Profiles for the Projected Stock and the SNI Demand

BAdI: Calculation of the Average Demand

If you want to use an alternative calculation method for the average demand, you can use the Business Add-In (BAdI) BAdI: Average Demand Calculation (/SCA/SMI_AVG_DEMAND) to implement your own average demand calculation. You can implement the BAdI in Customizing for Supply Network Collaboration under  Business Add-Ins (BAdIs) for SAP SNC Basic Settings Projected Stock .