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Best practice for timing of Transfer of forecast to R/3 Demand Management

Hi All,

I have APO DP 4.0 with monthly bucket. What is best practice to transfer the planning results to R/3. Meaning how many times we should transfer it?

And when forecast (PIR) is transfered it replaces the old PIR in demand management for that month. How it will affect the consumption of forecast in R/3? Meaning let us say in same month first time forecast transfered was 100 and by middle of the month 50 has been consumed. Now in same month forecast has been carried out and now 200 has been calculated for the same month and transfered to R/3. Now ideally the remaining quantity to be made should be 150 in R/3. Is it so? Any idea?

TBR, MM

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  • Posted on Sep 21, 2007 at 04:49 AM

    I assume APO-DP is used to create the statistical forecast and the data needs to be transferred to R/3 Demand Management (instead of Release to SNP) for subsequent planning.

    I do not know of any best practice since its driven by business requirement.

    Typically Statistical Forecasting is a monthly process followed by review and update by the Demand Planner. This updated / Consensus Forecast forms a basis for downstream planning (be it in SNP or R/3 Demand Management). So you transfer the Forecast at a time when Consensus Forecasting is available. Normally Release is done once a month as a scheduled background job, but if there are significant changes for certain location-products they can certainly be released on a need-basis.

    Hope this helps.

    Thanks,

    Somnath

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    • Hi Somnath,

      Thanks for the reply. The problem with frequent transfer of forecast to R/3 demand management is that the latest forecast ignores the prior shipments made in that month.

      I will give numeric example:

      Let us say we are in September month and in first week transfered forecast of 100 for one product to demand management. In first two weeks 40 items have been shipped so remaining is 60.

      Now we are in third week and planner realizes that instead of 100 we needed to plan 150 and 150 number is sent to R/3 demand management as a fresh forecast for that month.

      Now for September month we should see net demand as 110 (=150-40). Somehow this is not happening. It shows as a whole 150 net demand. Any idea why it is not happening.

      Thanks and Best Regards, Manoj

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