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When should the pareto be run?

A pareto should be run in the following instances:

  • At the beginning of each planning period. On a monthly basis at the beginning of each month when monthly forecast buckets are used and weekly when weekly buckets are used. This is necessary in order to save history in the waterfall and calculate updated distribution percentages.
  • If changes are made to the hierarchy
  • Linking old to new items.
  • Adding new items to one or more customers.
  • When changes are made to history i.e. manually removing a spike.
  • Enabling or disabling items in data maintenance.

Any time a pareto is run, a demand plan needs to be run since the pareto in essence changes the basis for the demand plan. Learn more by reading the article How to Run and Manage the S&OP Pareto Process

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