The purpose of this procedure is to correct forecasts for items which have had their forecast alarm triggered.
To start this procedure the following prerequisites must be met:
Follow the steps below to work with forecast alarms.
Select ‘Alarm Item. Display’ (FCS010), panel B.
To process forecast alarms for specific periods, specify sorting order 1. To process forecast alarms for a responsible planner, specify sorting order 2.
Select alarm activated items.
To review information about inventory control for the selected item/warehouse, specify option 11 = Item/warehouse. ‘On-hand. Display Summarized per Itm/Whs’ (MMS200/V) is called.
To process the alarm activated items, specify option 12 = Forecasts. ‘Automatic Forecast. Open’ (FCS001/B) is called.
If forecast alarm 1 is activated, determine whether demand for the period is normal. If this is considered abnormal, the demand can be changed and a manual forecast value entered. Forecast MAD (mean absolute deviation) and mean forecast error (ME) can also be changed.
If forecast alarm 2 is activated, revise the forecast estimate and enter a manual forecast value. MAD and ME are corrected. The smoothing constant can be adjusted, or a modified forecast method can be selected for the item/warehouse.
If forecast alarm 3 is activated, determine whether the forecast should be revised. If so, enter a manual forecast value. MAD and ME can be changed. Modifying the forecast method should also be considered, such as changing to manual forecasting.
In panel E, enter 1 in field Closed alarm to deactivate all the activated forecast alarms (after they are processed).
To process the next alarm activated item press F3 = End and repeat step 2 to 9.