Demand Type

Description

A demand type is used to regulate the type of demand on which a forecast calculation is based. This way, the total material requirements both for items consumed in production and those sold, can be calculated. This is done by calculating both forecasted sales and material requirements based on consumption for a manufacturing order.

Kinds of Demand Types

Forecast based demand can be selected from one or more of the following kinds of demand types.

1. Quantity sold and delivered

2. Quantity demanded by the customer

3. Quantity scrapped

4. Quantity consumed

5. Positive inventory variances

6. Negative inventory differences

7. Distribution order returns

8. Issues from distribution orders

9. Issues to distribution orders

Quantity sold and delivered

Quantity sold and delivered concerns demand from sales for customer orders. The actual delivery date determines the period in which the delivered quantity is counted. This demand type should not be used with the next type.

Quantity demanded by the customer

This concerns demand from sales for customer orders. The requested delivery date is used to determine the period in which the delivered quantity is counted. This demand type should not be used with the previous type.

Quantity scrapped

This concerns demand created by consumption for scrapped material. The date when the scrapping is reported determines the period in which the quantity is counted.

Quantity consumed

This concerns demand from consumption for manufacturing orders and other kinds of internal consumption. The date when the issue is reported determines the period in which the quantity is counted.

Positive inventory variances

This concerns demand for consumption for positive inventory variances. A positive inventory variance is when inventoried quantity is greater than inventory accounting, which shows negative demand. The date when the positive inventory variance is reported determines the period in which the quantity is counted.

Negative inventory differences

This concerns demand for consumption for negative inventory variances. A negative inventory variance is when inventoried quantity is less than inventory accounting, which shows positive demand. The date when the negative inventory variance is reported determines the period in which the quantity is counted.

Distribution order returns

This concerns negative demand resulting from returns of delivered distribution orders. The date when the return is reported determines the period in which the quantity is counted.

Issues to distribution orders

This concerns demand resulting from issues to delivered distribution orders. The date when the issue is reported determines the period in which the quantity is counted.