How to determine the confirmed forecastThis topic describes how to set up the algorithm to determine which part of the total forecast is confirmed forecast and which part is unconfirmed forecast. The general concept is explained in the Confirmed forecast and unconfirmed forecast topic. Two available methods If you are the customer that sends forecasts to a VMI supplier, you can choose between two approaches to distinguish confirmed forecast from unconfirmed forecast:
These approaches are further explained in the following sections. Confirmed forecast based on order type If the distinction between confirmed and unconfirmed forecast is based on order type, the customer must determine which part of the forecast is considered confirmed forecast. The customer can specify which types of orders are confirmed forecast in the Propagate as Confirmed Demand (cpvmi0101m000) session. The independent demand and dependent demand originating from these order types are considered confirmed forecast. For an example calculation, refer to the Help of the Base Confirmed Forecast on field. Then, the customer can pass this information on to the supplier as additional information in the messages that communicate the forecast from customer to supplier. Note
Confirmed forecast based on first periods If you base the definition of confirmed forecast on the distinction between the demand for the near future and demand for the far future, use one of the following methods:
Note The terms and conditions agreement can also specify that all forecast is considered confirmed forecast.
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