Constructing an accurate demand baseline is a difficult task, complicated by promotions, product seasonality and the effect of competing products. JDA Demand Decomposition applies advanced statistical algorithms to differentiate demand resulting from causal factors — such as promotions — from base demand history, providing the foundation for more accurate baseline forecasting and improved localized product availability.
Unless you’re separating promotional effects from base demand, your forecasts are likely marked by fictitious seasonality, leading to frequent overstocks and stock-outs. With the ability to handle frequent and varying promotional tactics and prices, JDA Demand Decomposition enables you to separate the effects of seasonality from promotional lift during seasonal promotions. It also considers demand peaks and valleys due to the halo or cannibalization effects of other products, as well as pre- or post-promotional changes in demand.
JDA Demand Decomposition splits your sales history data into regular time series and marketing/special events components to drive clear visibility into the actual factors driving demand. Regular time series includes trends and seasonality, while the marketing/special events component includes promotions, price fluctuations, halo and cannibalization effects, micro- and macro-market conditions, and unusual events to deliver previously unavailable insight into demand data.
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