Defining item forecasts

You create a forecast of item quantity and amount (by location) using Forecasts (IC19.1). Quantity forecasts are used in two programs:

  • Economic Order Quantity and Reorder Calculation (IC120) to calculate the Economic Order Quantity

  • Distribution Requirements Report (DR100) to calculate the Time-Phased Order Point

IC19.1 lets you create a forecast for up to 14 periods at once, based on the number of periods you set up using Period End Dates (IC01.2). For example, if you set up 12 monthly periods, you set up item forecasts for 12 periods, with each period representing one month. If you set up 52 weekly periods, you set up item forecasts for a quarter, with each quarter representing 13 weekly periods.

To define an item forecast

  1. Access Forecasts (IC19.1).
  2. Type or select the company, location, item, and year for the forecast.
  3. Type the forecast number and optionally a quarter for the forecast. You need to define a quarter if you set up weekly periods in Period End Dates (IC01.2). The values are:

    • First Quarter (for weekly periods 1 through 13)

    • Second Quarter (for weekly periods 14 through 26)

    • Third Quarter (for weekly periods 27 through 39)

    • Fourth Quarter (for weekly periods 40 through 52)

    Note: If you specify a quarter, only those periods for the quarter are affected by the action code.

    You can assign this forecast number to an item at an item location using Item Location (IC12.1).

  4. Set up your forecast-specific information.

    Use the following guidelines to enter field values:

    Action

    Select how to process the number of units. Select Spread to evenly divide the number of units for the first period over the total number of periods set up in Period End Dates (IC01.2). If the number is not evenly divisible, the remaining quantity is added to the last period. Select Duplicate to copy the number of units for the period to each blank period.

    Units

    Type the number of units used in the period.

    Amount

    Type the cost amount for the number of units used in the period.

  5. Choose the Add form action.

Related reports and inquiries

To Use
Print a list of item forecasts Forecast Listing (IC219)