Example of Forecast Forcing (R34610)

The Forecast Forcing program (R34610) uses the parent/child relationship at each level within the hierarchy to calculate a parent/child ratio. The parent/child ratio is the percentage of the amount or quantity for each child level, based on the total amount or quantity of the parent.

In this example, the parent original amount is 200 and its two children in the next level each have an original amount of 100. The program calculates the ratio as 50 percent of the parent. The parent/child ratio is calculated at each level of the hierarchy.

When forcing the changes up the hierarchy, the program summarizes each record again so that the summarized total of the records reflects the adjusted amount.

The system summarizes the changes to the lower levels up to the parent level. If you change Product Family X from a quantity of 100 to a quantity of 300, the parent quantity changes to 400.

The Forecast Forcing program also makes adjustments down the hierarchy. The parent/child ratio can be based on an original parent/child ratio or an adjusted parent/child ratio.

Using the original parent/child ratio, the system maintains the parent/child ratio when the parent quantity changes. The system uses the adjusted quantity of the parent to calculate the changes at the next lower level. An increase of 600 units to Customer A using the original ratio of 50 percent for each child results in the children calculation of 600 ×.5 = 300 each.