Forecast Processing

Forecast processing adjusts the forecast received as a demand schedule to make it suitable for use in supply planning. Forecast processing is a multi-step process that involves the following.

1. Forecast Explosion: If enabled, this step explodes the forecast of a model item into separate forecasts for all underlying option classes and options.
2. Forecast Spreading and Rounding: If enabled, this step spreads the forecasts received at a higher level of time aggregation to working days per the forecast spreading calendar. When the daily forecast quantity is calculated, it may be rounded up to a whole number, depending on the Rounding attribute for the item.
3. Forecast Consumption: In this step the forecast quantities, after spreading and rounding, are reduced, at the specified consumption level, by the open sales order quantities to produce a net forecast quantity.

You can define the following aspects of forecast processing on the Plan Options page, Supply tab, Forecast Allocation and Consumption subtab:

• Forecast Explosion
• Forecast Spreading
• Forecast Consumption
• Past Due Demands