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Forecast Consumption for Models and Predefined Configurations

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, you typically want to reduce the forecast demand by the sales order quantity to avoid overstating demand.

Oracle Master Scheduling/MRP and Supply Chain Planning automatically consumes forecasts for product families, configurations, models, option classes, and options when you place sales order demand for configurations. By default, forecast consumption consumes forecasts by item. If you want to consume your forecasts by distribution channel, customer type, or order type, use demand classes to control forecast consumption. You can also choose to consume your forecasts by one of the following forecast consumption levels:

Forecast Consumption Logic

The following diagram illustrates the forecast consumption logic.

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