How to set up confirmed forecast (customer side)

This topic contains instructions to set up functionality for confirmed forecast and unconfirmed forecast for the customer in a vendor managed inventory (VMI) situation.

For an overview of the various options, refer to Confirmed forecast and unconfirmed forecast.

Basic setup

To enable the use of confirmed and unconfirmed forecast, first set up the relevant terms and conditions agreement; for instructions on how to do this, refer to Setting up terms and conditions.

All the fields and check boxes mentioned in this topic are located in the Planning Terms and Conditions (tctrm1135m000) session, unless otherwise specified.

To specify that your supplier plans the supply, select the Supply Planning by Supplier check box.

To make a distinction between confirmed forecast and unconfirmed forecast, select the Use Confirmed Forecast check box.

You can use two methods to set up confirmed forecast:

  • Based on Order Type.
  • Based on First Periods.
To set up confirmed forecast based on order type

To set up confirmed forecast based on order type, use the following settings:

FieldValue
Use Confirmed ForecastYes (check box selected)
Specify Confirmed Forecast byMessage
Base Confirmed Forecast onConfirmed End Item Demand

 

In the Propagate as Confirmed Demand (cpvmi0101m000) session, specify which types of orders are considered to result in confirmed forecast.

Note

To ignore the order types and proceed as if all of the forecast is confirmed forecast, set the Base Confirmed Forecast on field to All Forecast. To proceed as if none of the forecast is confirmed forecast, set the Base Confirmed Forecast on field to None.

To set up confirmed forecast based on first periods

You can communicate for each period whether the forecast in that period is confirmed forecast within the message. In this situation, the supplier does not need to know the terms and conditions agreement. To achieve this, use the following settings:

FieldValue
Use Confirmed ForecastYes (check box selected)
Specify Confirmed Forecast byMessage
Base Confirmed Forecast onFirst Periods
Number of PeriodsThe number of periods in a demand forecast message that must be marked as confirmed forecast.

 

To define the number of periods in which the forecast quantities are considered to be confirmed demand in the terms and conditions agreement, which has been negotiated with the supplier, use the following settings:

FieldValue
Use Confirmed ForecastYes (check box selected)
Specify Confirmed Forecast byTerms and Conditions
Interpret Confirmed ForecastFirst Periods
Number of PeriodsThe number of periods in a demand forecast message interpreted as confirmed forecast.

 

Note

To specify that all forecast is considered confirmed forecast, set the Interpret Confirmed Forecast field to All Forecast.