Forecast Families

This process is used to create and update Forecast Family and the family structures containing them. These are used in forecasting demand per item/warehouse.

Forecasts for individual item/warehouses are obtained by exploding the forecasts for its forecast family. A forecast family can be exploded through the family structure.

Before you start

This process does not have any specific prerequisites. However, to create a forecast family structure, demand history for each item/warehouse included in it must be available.

Follow these steps

The process includes these activities:

  1. Create Forecast Family

  2. Create Forecast Family Structure

  3. Create Historical Distribution

  4. Confirm Forecast Family

Create Forecast Family

This activity involves first determining item/warehouses having common demand characteristics, such as trend changes or seasonal variations. This can be done by reviewing demand statistics in program ‘Item Statistics. Display’ (MMS090). Such item/warehouses are then grouped in a number of Forecast Family.

When group forecasts are separated entirely per warehouse, then a forecast family is created for each item. Forecast families are created and entered as described in procedure Create Forecast Family.

Create Forecast Family Structure

A forecast family structure is then created for each forecast family to describe the relationship between the included items/warehouses and their estimated share of the total forecast family demand. For more information, see procedure Create Forecast Family Structure.

Create Historical Distribution

This activity involves generating historical demand distribution to obtain a statistical basis for determining each item/warehouse’s share of the total forecast family demand. This is described in procedure Create Item Distribution. The demand distribution can then be called from the panel in program ‘Forecast Family. Open’ (FCS400) where forecast family structures are entered and updated.

Confirm Forecast Family

After review of the appropriate information, the process ends when the created and updated forecast families and family structures are confirmed.

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