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Former Member

forecast consumption

Hi,

I have a forecast of 20 at DC and in the second case a sales order of 20 and in the third case demand + Sales order of 20+20 = 40.

when I run Heuristic, the demand in all three cases will flow to factory.

I do not know how the forecast or the sales order will get consumed in all three cases

Regards,

SS

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2 Answers

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    Former Member
    Jan 04, 2012 at 09:00 AM

    Hi Sriman,

    Depends on the requirement strategy that you are using for your product in APO.

    (I am keeping S.O qty above FC to demnstrate consumption + total demand calc)

    Case 1:

    Sales order -20

    Strategy 10:

    Total demand = 0

    Strategy 20:

    Total demand = 20

    Case 2:

    Forecast -10

    Total demand is 10 for both strategies

    Case 3::

    Forecast -10

    Sales order -20

    Strategy 10:

    Total demand = 10 (sales order does not consume FC)

    Strategy 20:

    Total demand = 20 ( SO consumes FC)

    Regards,

    Ashok

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  • Jan 04, 2012 at 12:22 PM

    Hi SS,

    Ashok already explained with some examples. Let me add to it.

    Requirement Strategy is the key for getting total demand and for consumption of Forecast by Sales Orders.

    If you talk about consumption of forecast by Sales Orders, then in 10 (MTS), no consumption of forecast happens. With 20 (planning with final assembly), SOs will consume the forecast.

    With 10, Sales Orders are not relevant as demand. Only forecast comes into picture outside the forecast horizon.

    With 20, within the forecast horizon, you would have only the Sales Orders as demand, and outside of forecast horizon, total demand would be sum of forecast (unconsumed forecast) & sales orders.

    Pls note that the above comments are only with respect to SOs and forecast. Other demands like dependent demand, distribution demand, etc would also be considered when calculating total demand.

    Hope this helps.

    Thanks - Pawan

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