More on consumption

Submitted by Anonymous on Fri, 02/20/2009 - 22:58
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Consumption with Daily Buckets

Consumption with Weekly Buckets

Consuming New Forecasts
Automatic forecast consumption, as controlled by the Planning Manager, consumes existing forecasts with each sales order created. New forecasts you create are consumed only by the sales orders created after forecast creation. You can, however, apply sales orders already consumed by other forecasts to the new one.

Outlier Update Percent
This controls the effects of abnormal demand with a maximum percent of the original quantity forecast that a single sales order can consume.
Example
You have several customers. Each typically orders 100 units in a given period. One of the customers is having a special promotion that could increase demand significantly. Use the outlier update percentage to ensure that these "one time" sales orders do not overconsume the forecast. Select a number of sales orders within the demand time fence to include. Including only sales orders from today forward is useful if your forecast begins today, and/or if the forecast begins on the first day of a period, rather than in the middle of a period.

In the above example, daily forecast exists for 20 on the 2nd and the 9th with an outlier update percent of 50 on each forecast. When you place sales order demand for 50 on the 9th, the forecast consumption process attempts to consume on the sales order line schedule date only, since the forecast is stated in daily buckets and no backward consumption days exist. Because an outlier update percent of 50 exists on the forecast, the consumption process consumes only 50% of the forecast. The outlier update percent applies to how much of the original forecast quantity, not the sales order, the
consumption process can consume. In this example, the consumption process consumes 50% of the forecast
(10) and the rest of the sales order quantity (40) is overconsumed. If there were a backward consumption days of 5, 50% of the forecast on the 2nd would also be consumed, and the overconsumed quantity would be 30.
 
Using the same example, if another sales order for 50 is placed on the 9th, it consumes 50% of the original forecast quantity (10) and the current forecast quantity on the 9th becomes zero. Overconsumption is increased by an additional 40 to a new total on the 9th (80).

 

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