Forecast Consumption Examples
The following video explains Supply Chain Management concepts and terminology:
The following examples show how to use the Forecast Consumption demand source method. For more details about this method, see Demand Planning on Item Records.
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Forecast Consumption Example 1 (Order Falls within Consumption Window)
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Forecast Consumption Example 2 (Order Consumes Forecast Amount)
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Forecast Consumption Example 3 (Order Consumes Multiple Forecast Amounts)
Forecast Consumption Example 1 (Order Falls within Consumption Window)
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Forward consumption is 1 day.
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Backward consumption is 2 days.
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Orders are forecast for 20 units on days 1 and 5.
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An order for 10 units is entered on day 3.
Since the order for 10 units on day 3 is within the consumption window, NetSuite considers those 10 units consumed. The forecast for day 1 is updated to 10 units (20 units forecasted minus 10 units consumed).
Forecast Consumption Example 2 (Order Consumes Forecast Amount)
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Forward consumption is 1 day.
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Backward consumption is 2 days.
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Orders are forecast for 20 units on days 1 and 5.
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An order for 30 units is entered on day 3.
Since the order for 30 units on day 3 is within the consumption window, NetSuite considers some units consumed.
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With 2 days of backward consumption, the the 20 units on day 1 are within the window, so the forecast for day 1 is fully consumed and set to zero units.
(20 units forecasted minus 20 units consumed = 0 units)
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With 1 day of forward consumption, the 20 units on day 5 aren't within the window. Therefore, they aren't consumed, and the forecast for day 5 stays at 20 units.
Forecast Consumption Example 3 (Order Consumes Multiple Forecast Amounts)
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Forward consumption is 3 days.
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Backward consumption is 2 days.
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Orders are forecast for 20 units on days 1 and 5.
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An order for 30 units is entered on day 3.
Since the order for 30 units on day 3 is within the consumption window, NetSuite considers some units consumed.
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With 2 days of backward consumption, the 20 units on day 1 are within the window. The forecast for day 1 is fully consumed and is set to zero units.
(20 units forecasted minus 20 units consumed = 0 units)
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With 3 days of forward consumption, the 20 units on day 5 are within the window. The forecast for day 5 is partially consumed and is set to 10 units.
(20 units forecasted minus 10 units consumed = 10 units).
