Forecast Consumption

In the logistic planning process, demand forecasts are used as an estimate of future demand. In the course of time, this estimate is gradually filled in by actual orders. This process is known as forecast consumption: the forecast is consumed by actual demand.

The goal of forecast consumption is to determine which part of the demand forecast is already matched by actual orders, and which part is not. During the planning process, the following demand is taken into account:

• The actual demand
• The nonconsumed demand forecast

In addition to direct customer demand, there can also be dependent demand for an item, resulting from the explosion of requirements for another item. If you wish, you can include dependent demand in your forecasts, by selecting the Dependent Demand Forecast check box in the Items - Planning (cprpd1100m000) session. In this case, dependent demand is also used to consume forecast demand.

The way in which LN applies forecast consumption depends on the value of the Master Plan check box in the Items - Planning (cprpd1100m000) session for the plan item involved:

• If the plan item has an item master plan, forecast consumption is applied to the demand plan in the item master plan, and in the corresponding channel master plans.
• If the plan item has no item master plan, forecast consumption is applied to the special demand in the Special Demand by Item (cpdsp2100m000) session.