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Outlier Update Percent

This controls the effects of abnormal demand with a maximum percent of the original quantity forecast that a single sales order can consume.

Example

You have several customers. Each typically orders 100 units in a given period. One of the customers is having a special promotion that could increase demand significantly. Use the outlier update percentage to ensure that these "one time" sales orders do not overconsume the forecast.

In the above example, daily forecast exists for 20 on the 2nd and the 9th with an outlier update percent of 50 on each forecast. When you place sales order demand for 50 on the 9th, the forecast consumption process attempts to consume on the sales order line schedule date only, since the forecast is stated in daily buckets and no backward consumption days exist. Because an outlier update percent of 50 exists on the forecast, the consumption process consumes only 50% of the forecast. The outlier update percent applies to how much of the original forecast quantity, not the sales order, the consumption process can consume. In this example, the consumption process consumes 50% of the forecast (10) and the rest of the sales order quantity (40) is overconsumed. If there were a backward consumption days of 5, 50% of the forecast on the 2nd would also be consumed, and the overconsumed quantity would be 30.

Using the same example, if another sales order for 50 is placed on the 9th, it consumes 50% of the original forecast quantity (10) and the current forecast quantity on the 9th becomes zero. Overconsumption is increased by an additional 40 to a new total on the 9th (80).


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