Understanding Forecast Consumption
Forecast consumption is based on the assumption that actual sales orders reduce, or consume, the forecasted quantities. This approach ensures that sales orders are not treated as additional demand to the forecast during a planning period. The plan begins with gross forecast. Actual sales orders are placed that consume the forecast. The result is an adjusted forecast-that is, the forecast balance not consumed by sales orders.
In JD Edwards EnterpriseOne software, you have two types of forecast consumption strategies that are available to you:
Forecast consumption by period (time fence rules C and G).
Forecast consumption across multiple periods (time fence rule H).
Either of these options can be limited to forecast consumption by customer.
Forecast consumption by period only requires that you use planning fence rule C or G, and create a forecast for the item. The aggregate forecast will be reduced by the aggregate sale orders for a period.
Forecast consumption across multiple periods requires that you use planning fence rule H, create a forecast for the item, and define forecast consumption periods. These forecast consumption periods span multiple weekly or monthly planning periods or buckets. The aggregate forecast within the forecast consumption period is reduced by the aggregate sales order in the same period. This calculation includes shipped sales orders.
When you use the forecast consumption by customer functionality through processing options in requirements planning, the system only reduces the forecast quantities for specific customers by the sales order quantities for the same customer. If a customer does not have a customer-specific forecast, the system uses the aggregate forecast consumption logic.