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Forecast Consumption Setting

Forecast consumption replaces forecasted demand with actual sales order demand. Each time you create a sales order line, you create actual demand. If the actual demand is already forecasted, the forecast demand must be decremented by the sales order quantity to avoid counting the same demand twice.

This setting is helpful when the demand plan is spread over periods and actual demand may arrive in larger than forecasted values within a particular day, week, or month. The forecast consumption will decrement the forecast by the sales order quantity by either consuming the forecast backward, forward, or in both directions based on a specific number of days.

The setting is under "Requirement Planning Settings."  The forecast consumption works only with Order/Statistical Forecast and MTO Order/Forecast consumption types.

Forecast consumption period and type are defined from Multiple Edit and Options tab under "Requirement Planning Settings."

There are 4 types of consumption:

  1. Forward: Consumes forecast on a forward looking basis
  2. Backward: Consumes forecast on backward looking basis
  3. Backward / Forward: Consumes forecast first on a backward basis and then on a forward basis
  4. Weekly: Consume the entire weeks forecast. The 'Weekly' consumption is available only for requirement planning with daily buckets and works only in the daily horizon. 

Please note that closed orders in future weeks (i.e. shipped early) will also consume forecasts. In addition past due orders and closed orders in the past that are within the consumption period will also be part of the consumption calculation. The Backward / Forward type consumes forecast first on a backward basis and then on a forward basis.

Forecast Consumption Setting

The forecast consumption setting is found in multi-edit under Requirement Planning Settings, and ...

In the item options tab under Requirement Planning Settings.

Forecast consumption example - 14 days forward consumption

Result

The independent demand consumes the forecast which results in the remaining forecast being the Forecast - Independent demand. What this means is that the reorder requirement will not be overstated due to the received orders consuming the forecast.

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