Item forecasting
Item forecasting is the process of analyzing past ordering activity for an item to
predict future ordering demand.
Use item forecasting to predict the ordering demand for that item for the upcoming periods and plan an ordering strategy accordingly.
You can create a forecast of item quantity by location using Forecasts. Quantity forecasts are used in these ways:
- Economic Order Quantity and Reorder Calculation to calculate the Economic Order Quantity
- Distribution Requirements Report to calculate the Time-Phased Order Point
Use Forecasts to create a forecast for up to 14 periods at once, based on the number of periods you set up using Period End Dates. For example, if you set up 12 monthly periods, you set up item forecasts for 12 periods, with each period representing one month. If you set up 52 weekly periods, then you set up item forecasts for a quarter, with each quarter representing 13 weekly periods.