Hello BS,
Here is my understanding purely based on research and SAP Help. ( I have not worked in CDP or CBF).
Characteristics Based Forecasting(CBF) is useful for Configurable products. Typically these Configurable Products can have several different variants but they are managed by Single Product Number. As now days Customers are becoming more demanding, the demand for such Configurable products is increasing too. CBF is needed when you not only need for forecast for the final product but also for its individual characteristic value. I think CBF (and CDP) are more relevant in MTO scenario to deal with Configurable products. The CBF forecast is released to PP/DS which creates Planned Independent Requirements(PIR) and PP/DS is used for CDP purpose.
CBF for configurable products having some specific characteristics(like color, specific accessories etc), it creates the forecast of configurable products (demand planning). But the important thing is CBF Forecast has the total forecast at the configurable parent level and apportioned quantity for each configurable characteristic value from CBF profile.
CBF is integrated with PP/DS, The forecast is used by PP/DS functionality for planning production. Basically CBF compliments Characteristics dependent planning (CDP) functionality. CDP is used for the purpose of supply planning of configurable products.
Technically, it requires mapping of class types : the class needs to be assigned to configurable products in ECC, after integration Class Type 400 gets assigned in APO. PDS or PPM is required. CBF Profile is needed to facilitate forecasting of Configurable products in DP and its subsequent release to PP/DS. Consumption Group is required for forecast consumption by Sales orders. Besides, MPOS contains three additional characteristics which allows CBF forecasting for Configurable Products. Planning Area and Planning Book, CBF profile and CVCs plays important role in overall forecasting process.
SAP Help Link :
Characteristics-Based Forecasting - SAP Library
Hope this will help.
Thank you
Satish Waghmare