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Forecast Consumption

Forecast consumption is the process that replaces forecast demand with sales order demand. Each time you place a sales order, you create actual demand. If the actual demand is forecasted, then you typically want to reduce the forecast demand by the sales order quantity to avoid overstating demand.

Master Scheduling/MRP automatically consumes forecasts for configurations, models, product families, option classes, and options when you place sales order demand for configurations.

Forecast consumption for product families behaves the same as forecast consumption for models. A sales order for a family member will consume forecasts for the member item as well as forecasts for the entire family.

The following table shows how forecast consumption consumes the exploded forecast for 100 Laptop Computers when a customer places a sales order for 10 Laptop Computers with 486 processors, VGA1 monitors, and DOS operating system. Notice that forecast consumption generates and consumes derived sales order demand for each mandatory component where you have set Forecast Control to Consume or Consume and derive.


See Also

Two-Level Master Scheduling


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