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:
| Field | Value |
|---|---|
| Use Confirmed Forecast | Yes (check box selected) |
| Specify Confirmed Forecast by | Message |
| Base Confirmed Forecast on | Confirmed End Item Demand |
In the Propagate as Confirmed Demand (cpvmi0101m000) session, specify which types of orders are considered to result in confirmed forecast.
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:
| Field | Value |
|---|---|
| Use Confirmed Forecast | Yes (check box selected) |
| Specify Confirmed Forecast by | Message |
| Base Confirmed Forecast on | First Periods |
| Number of Periods | The 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:
| Field | Value |
|---|---|
| Use Confirmed Forecast | Yes (check box selected) |
| Specify Confirmed Forecast by | Terms and Conditions |
| Interpret Confirmed Forecast | First Periods |
| Number of Periods | The number of periods in a demand forecast message interpreted as confirmed forecast. |