Forecast Consumption with an Item Master Plan

The demand plan in the item master plan consists of:

These fields are subject to forecast demand consumption.

The demand forecast is consumed whenever the item master plan is updated.

The following master-plan fields are used to consume the demand plan:

  • Customer Orders
  • Customer Deliveries
  • Dependent Scheduled Demand (*)
  • Dependent Distribution Demand (*)
  • Dependent Material Demand (*)
  • Internal Deliveries (*)
  • Distribution Deliveries (*) (*) Only if the Dependent Demand Forecast check box in the Items - Planning (cprpd1100m000) session is selected.

The nonconsumed part of the demand plan is displayed in the Nonconsumed Forecast field.

Forecast-consumption procedure

The plan period of a forecast and the plan period of the actual demand that consumes it do not have to match exactly. A particular instance of actual demand can also consume forecast demand from an earlier period, or forecast demand from a later period. This depends on the values of the following fields in the Scenarios (cprpd4100m000) session:

  • Backward Forecast Consumption
  • Forward Forecast Consumption

Suppose that there is an instance of actual demand in plan period P. The earliest period for consumption is computed as follows:

  • Take the start date of period P
  • Subtract the value of the Backward Forecast Consumption field from this period start date, and determine the period B in which the resulting date falls

The latest period for consumption is computed as follows:

  • Take the end date of period P
  • Add the value of the Forward Forecast Consumption field to this period and date, and determine the period Y in which the resulting date falls

The consumption proceeds as follows:

  • The actual demand of period P is used to consume the (nonconsumed) forecast in period B.
  • If there is still actual demand left, this is used to consume the forecast in period C, and so on.
  • If necessary, the consumption process continues until period Y is reached and the forecast of this period is fully consumed.
Forecast consumption during online ATP updates

When the ATP is updated online, Enterprise Planning also applies forecast consumption. The result can differ from the normal consumption procedure during a master-plan update, because during an ATP update, the consumption always remains within the bounds of one plan period. In other words, no backward or forward consumption is used.

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