Setting parameters for 1000s of SKUs in SAP IBP Forecasting Models

[former_member1134486]

We have over a thousand SKUs, and the whole system is managed in SAP IBP.

Usually, the business owners set the parameters for the forecasting models by hand, but seeing the large number of SKUs, is just impossible to do it, and end up with some hacks, like grouping similar SKUs. This has to be done weekly to readjust new sales numbers.

Is there a way to automate this capture?

[moshenaveh]

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[lev_degtyarov]

Hello

What exact parameters are you talking about?

IBP has automated time-series analysis for example which classify each planning object as seasonal, trend, continuous or intermittent. For each category type then a specific forecasting model can be run.

For example for objects which is classified as 'intermittent' you run forecast model with Croston algos. The parameters for Croston can be defined by adding multiple algos and using option 'best-fit'.

Regards

Lev

[LauraTozzo]

Hi Leon,

SAP IBP is not meant to have one forecast model per SKU. The goal is to automatize the forecast process as much as possible. Therefore, grouping SKUs and using a forecast model for each group is the way to go.

To help you with this, there are a few things you can do: you can use ABC/XYZ segmentation to group products based on their importance and volatility, and you can use time series analysis (forecast automation profiles) to detect which SKUs have seasonality and which do not.

Finally, you can use "best fit" forecast models where you define multiple algorithms, and let the system pick the one that is the best for each combination. This way the model can adapt each week depending on the latest information on the sales.

Best regards

Laura