Example of Product Consumption Forecasting

This topic gives one example of product consumption forecasting. You might use this feature differently, depending on your business model.

A customer requests coffee for an upcoming event at which 100 attendees are expected. You know from experience that approximately four out of five attendees drink an average of two cups of coffee at such an event. The price of coffee is 10.00 per gallon. From this information, the consumption quantity of the product can be forecast for this event. The amount of revenue expected from this product can also be estimated for this event.

Create a product representing the coffee in Siebel Hospitality, as shown in the procedure that follows.

To forecast product consumption for an event

1. Navigate to the Administration - Product screen, then the Products view.

2. In the Products list, create a new product record.

3. In the new record, complete the fields with the values shown in the following table.

   Field	Value	Comments
   Forecast Qty	Selected	Product consumption forecasting is enabled.
   UoM	Gallon	None
   Consumption UoM	Cup	None
   UoM Conversion Factor	20	Each coffee-sized cup holds approximately 6 ounces.
   Consumption Factor	2	Attendees who consume coffee are expected to consume two cups each, on average.
   % Participation	0.8	80 percent of attendees are expected to drink coffee.

   The forecasting calculations and results for the event are shown in the following table.

   Forecast	Calculation	Result
   Number of attendees consuming the product	100 multiplied by 0.8	80
   Number of cups consumed	80 multiplied by 2	160
   Number of gallons consumed	160 divided by 20	8
   Revenue	8 multiplied by 10.00	80.00