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Consumption of Models

Forecast consumption takes place both before and after the AutoCreate Configuration process creates a configuration item, bill, and routing for a configuration. Oracle Master Scheduling/MRP and Supply Chain Planning ensures that forecast consumption is consistent before and after the creation of the configuration item.

Attention: The fact that forecast consumption takes place twice, both before and after the creation of the configuration item, is transparent to the user. The purpose of this section is only to provide detailed information.

Forecast Consumption: Before AutoCreate Configuration

When your customers order configurations, Oracle Order Entry places sales order demand for all ordered models, option classes, and options.

Attention: Under normal circumstances, no sales order demand is placed for mandatory components. You can also generate derived sales order demand for selected mandatory components, since forecast consumption generates derived sales order demand for all items where you have set Forecast Control to Consume or Consume and Derive. This lets you define and maintain forecasts for key mandatory components as well as models, option classes, and options.

Before you run the AutoCreate Configuration process, forecast consumption uses actual sales order demand for models, option classes, options, and derived sales order demand for selected mandatory components, to consume your forecasts.

Example: Before AutoCreate Configuration

The following example illustrates how forecast consumption consumes an 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. The SO column shows sales order quantities. 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.

Level Item BOM Item Type Forecast Control Optional Plan % FC/ SO
. 2 . Laptop Computer Model Consume     90 10
. . 3 . . Carrying Case Standard Consume and Derive No 100% 90 10
. . 3 . . Keyboard Standard Consume and Derive No 100% 90 10
. . 3 . . CPU Option Class Consume and Derive No 100% 90 10
. . . 4 . . . 386 Processor Standard Consume and Derive Yes 65% 65
. . . 4 . . . 486 Processor Standard Consume and Derive Yes 35% 25 10
. . 3 . . Monitor Option Class Consume and Derive No 100% 90 10
. . . 4 . . . VGA Option Class Consume and Derive Yes 70% 60 10
. . . . 5 . . . . VGA Manual Standard Consume and Derive No 100% 60 10
. . . . 5 . . . . VGA1 Standard Consume and Derive Yes 50% 25 10
. . . . 5 . . . . VGA2 Standard Consume and Derive Yes 50% 35
. . . 4 . . . EGA Option Class Consume and Derive Yes 30% 30
. . . . 5 . . . . EGA1 Standard Consume and Derive Yes 55% 16.5
. . . . 5 . . . . EGA2 Standard Consume and Derive Yes 45% 13.5
. . . 4 . . . Monitor Manual Standard None No 100%  
. . 3 . . Operating System Option Class Consume and Derive Yes 90% 80 10
. . . 4 . . DOS Standard Consume and Derive Yes 80% 62 10
. . 4 . . UNIX Standard Consume and Derive Yes 20% 18

Forecast Consumption: After AutoCreate Configuration

The AutoCreate Configuration process replaces sales order demand for ordered models, option classes, and options with sales order demand for the newly created configuration item. This prompts forecast consumption to unconsume forecasts for the models, option classes, options, and selected mandatory components, and consume forecasts for the new configuration item and its components.

When creating the configuration item, the AutoCreate Configuration process also creates a single level bill of material for the configuration item. The single level bill includes all ordered options, all mandatory components of all ordered models and options classes, and each ordered model and option class. The models and option classes appear on the configuration bill as phantoms, and are only there to consume forecasts and relieve master schedules. They are not used by the planning process or Oracle Work in Process since all mandatory components from the model and option class bills are also included directly on the single level bill.

The following table illustrates the single-level configuration bill created by the AutoCreate Configuration process in response to the sales order for 10 Laptop Computers with 486 processors, VGA1 monitors, and DOS operating system.

Level Item BOM Item Type Optional
1 Laptop Computer-001 Standard No
2 Laptop Computer Model No
2 Carrying Case Standard No
2 Keyboard Standard No
2 CPU Option Class No
2 486 Processor Standard No
2 Monitor Option Class No
2 VGA Option Class No
2 VGA Manual Standard No
2 VGA1 Standard No
2 Monitor Manual Standard No
2 Operating System Option Class No
2 DOS Standard No

In the post-configuration stage, forecast consumption uses the sales order demand for the new configuration item to consume forecasts. Typically, you do not have any forecasts defined for unique configurations. Therefore, forecast consumption does not find any forecasts to consume. If forecast explosion cannot find any forecasts to consume, it explodes the configuration bill and consumes forecasts for each model and option class on the bill. It also consumes forecasts for each standard item on the configuration bill where Forecast Control is set to Consume or Consume and Derive.

To ensure that forecast consumption is consistent before and after the AutoCreate Configuration process, forecast consumption only consumes forecasts for standard items on configuration bills where Forecast Control is set to Consume or Consume and Derive.

Attention: If you set Forecast Control to None for an option, and then define forecasts for the option, you get inconsistent forecast consumption before and after the AutoCreate Configuration process. Before the AutoCreate Configuration process, forecast consumption uses actual sales order demand to consume any existing forecasts. After the AutoCreate Configuration process, forecast consumption does not consume those same forecasts since it only consumes forecasts for standard items on configuration bills where Forecast Control is set to Consume or Consume and Derive.

Example: After AutoCreate Configuration

The following table shows how forecast consumption consumes the exploded forecast for 100 Laptop Computers after the AutoCreate Configuration process replaces sales order demand for the model, option classes, and options with sales order demand for the newly created configuration item.

Level Item BOM Item Type Forecast Control Optional Plan % FC/ SO
1 Laptop Computer-001 Standard Consume     10

Level Item BOM Item Type Forecast Control Optional Plan % FC/ SO
2 Laptop Computer Model Consume     90
. 3 . Carrying Case Standard Consume and Derive No 100% 90
. 3 . Keyboard Standard Consume and Derive No 100% 90
. 3 . CPU Option Class Consume and Derive No 100% 90
. . 4 . . 386 Processor Standard Consume and Derive Yes 65% 65
. . 4 . . 486 Processor Standard Consume and Derive Yes 35% 25
. 3 . Monitor Option Class Consume and Derive No 100% 90
. . 4 . . VGA Option Class Consume and Derive Yes 70% 60
. . . . 5 . . . . VGA Manual Standard Consume and Derive No 100% 60
. . . . 5 . . . . VGA1 Standard Consume and Derive Yes 50% 25
. . . . 5 . . . . VGA2 Standard Consume and Derive Yes 50% 35
. . . 4 . . . EGA Option Class Consume and Derive Yes 30% 30
. . . . 5 . . . . EGA1 Standard Consume and Derive Yes 55% 16.5
. . . . 5 . . . . EGA2 Standard Consume and Derive Yes 45% 13.5
. . . 4 . . . Monitor Manual Standard None No 100%  
. . 3 . . Operating System Option Class Consume and Derive Yes 90% 80
. . . 4 . . . DOS Standard Consume and Derive Yes 80% 62
. . . 4 . . . UNIX Standard Consume and Derive Yes 20% 18


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