10 Overview to Aggregate Planning Forecasts

This chapter contains these topics:

10.1 Objectives

  • To define the distribution hierarchy

  • To revise address book revisions

  • To review branch or plant data

  • To review item branch locations

  • To copy summary sales order history into the Summary Forecast table

  • To review and revise summary copied sales order history

  • To generate summary forecasts

  • To explode a forecast for a pseudo parent item down to the component

10.2 About Aggregate Planning Forecasts

An aggregate production plan is usually stated by product family in terms of a monetary value of production over the given planning horizon.

Factors considered in the aggregate planning activity include:

  • Sales forecasts

  • Inventory investment

  • Capital equipment utilization

  • Work force capacity

  • Skills training requirements

  • Corporate policies concerning customer service levels, overtime, and subcontracting

Summary forecasts aggregate sales history into a monetary value of sales by product family, by region, or in other groupings used as input to the aggregate production planning activity. Planning bill forecasts convert the output of the approved aggregate plan into a time-phased master schedule for buildable end item numbers.

Complete the following tasks:

  • Understand summary forecasts

  • Work with summary sales order history

  • Generate summary forecasts

  • Understand planning bill forecasts

  • Set up a planning bill

  • Generate planning bill forecasts