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How to read Shipment Forecast Casual Details ? Any insights or Documentation on the same ?

edited Aug 10, 2021 9:49AM in Supply Chain Planning and Collaboration 1 comment

Summary

Casual Factors Analysis

Content

Hi,

Need some help or any documentation on how to read and explain this decomposition groups?

I queried on the table in demand management "Shipments Forecast Casual Details"  I get to see the following data against the month of Aug 21.

Level Decomposition Group  8666

Lag Decomposition Group  3

Seasonality Decomposition Group  814

Trend Decomposition Group 2025

Total Shipment Forecast  11508

Please correct me if I am wrong:  Is this explanation good.- just for confirmation ?.............The level decomposition group 8666 is the unbiased forecast (based on naive forecasting) based on the historical data (as of past year/last 12 months etc.).  814 is the forecast increase based on seasonal Impact in the month of Aug,  2025 increase is because of some trend impact of the past /history shipment data, Lag is because of the impact of time lag/order fulfillment lead time between the demand and actual sales/shipments happening to meet that demand.

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