2891549 - Statistical Forecast is Incorrect for Product with Forecasting Model as Average

For periods without requirements at the start of the historical horizon, the calculation does not take place using the number of periods in the horizon but only as of the first period with demand. This will shorten the number of periods for the average value.

Example: Product A has forecast from Jan to Dec. Therefore the  historical horizon  is 12 months.
Say there is one-time consumption 5 pcs in Oct.  Monthly average for the forecast is calculated incorrectly as 5/3 = 1.667pcs/period.
Ideally Correct value is 5/12 = 0.417pcs/Period

SAP Business ByDesign

1. Go to Demand Planning workcenter and Demand Plans view.
2. Find Demand Plan ID XX(where XX is the Demand Plan ID) and Plan.
3. Filter by product A(where A is the product)
You will notice that Statistical Forecast is 1.667 for the next Planning Horizon period.

Flag for Ignore Leading Zero(s) field is selected hence system ignores the periods without requirements until the first requirement in Oct month.

To resolve the above error follow the below steps:

1. Go to Demand Planning workcenter and Demand Plans view.
2. Find Demand Plan XX and Edit.
2. Select Process Settings Tab and Forecasting Models subtab
3. Uncheck the flag for Ignore Leading Zero(s) field.

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