on 10-04-2016 2:32 PM
Hi All,
I am working on SAP IBP Demand Sensing. There are four field in Demand sensing (full) Algorithm. The fields are: Maximum forecast increase,Maximum forecast increase(%),Maximum forecast decrease,Maximum forecast decrease(%) associate with consensus forecast.(Attachment)
There are some questions: a) If I set "Maximum forecast increase"=50. The incremental limit will be affecting the "consensus forecast" or "Sensed Demand Qty" which is output of Demand Sensing(DS) algo.
b) If I set "Maximum forecast increase"=50 and "Maximum forecast increase(%)"=30. Which will become effective absolute value 50 or 30%.
Could anybody give me light on the topics.
Thanks,
Somenath
Hi Somenath,
in general the following simple rule applies:
For smaller volumes absolutes are picked, while for larger volumes percentages are picked.
But let me give a short example to illustrate this a bit more.
Example:
Steps:
UPPER_BOUND=Max(CONSENSUSDEMAND + MAX_INCREASE, CONSENSUSDEMAND * (1 + MAX_PCT_INCREASE))
LOWER_BOUND =Min(CONSENSUSDEMAND - MAX_DECREASE,CONSENSUSDEMAND * (1 - MAX_PCT_DECREASE))
In our case: UPPER_BOUND = Max (100+50 , 100*1,3) = 150
So, if the final sensed demand numbers does not fall within this range, then it is capped
If SensedDemand > UPPER_BOUND
SensedDemand = MAX( UPPER_BOUND,SUM(WEEKLY_OPEN_ORDERS))
Else If SensedDemand < LOWER_BOUND
SensedDemand = MAX(LOWER_BOUND, SUM(WEEKLY_OPEN_ORDERS))
End if
In our case: Sensed Demand (300 PC) > UPPER_BOUND (150 PC) --> Sensed Demand = MAX (150 , 130) = 150 PC
--> Thus, for smaller volumes absolutes are picked, while for larger volumes percentages are picked.
Best regards, Jens.
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