DEMAND INFLUENCING FACTOR title: demand influencing factor (SCM-FRE) (SAP Library - Glossary)
DEMAND INFLUENCING FACTOR category: Forecasting and Replenishment (SCM-FRE)
DEMAND INFLUENCING FACTOR explained:
An external factor with significant influence on the sales or demand of a product. A demand influencing factor (DIF) can be quantified either using Boolean logic (meaning the factor is active/on or not active/off), or using the metric system (meaning that the factor has a particular value at any point in time). By analyzing the value of the DIF (or rather how the value has evolved with time) along with historical demand figures, it is possible to determine a correlation between the DIF and the demand. This correlation can be used to predict future demands if the future evolution of the DIF is known.
Examples
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