Overview of Forecast Processing in Replenishment Plans

This topic explains how forecasts are spread to individual working days within replenishment plans and consumed by sales orders, movement request demands, and transfer order demands before replenishment orders are calculated.

Points About Forecast Processing

Note these points about how forecasts are spread and consumed in replenishment plans:

• The forecast can be provided through the same or another replenishment plan, a demand plan, or an external forecast schedule.

• The forecast is spread to individual working days and consumed by sales orders, movement request demands, and transfer order demands before replenishment orders are calculated. Thus, duplication of demand is avoided.

• When the spreading is done, the forecast for nonworking days is aggregated and moved to the previous working day.

• For the daily, weekly, or period planning time levels, the forecast is spread and consumed within weeks.

  For the monthly planning time level, the forecast is spread and consumed within months.

• All available open and shipped sales orders, transfer order demands, and movement request demands are aggregated within the week or month, and the forecast is consumed from the first day of the week or month.

• Past due sales orders are considered according to the value of the Past Due Sales Order Days field on the Organizations tab on the Maintain Supply Network Model page and moved to the plan start date for consumption of the forecast.

• Past due forecast is considered according to the value of the Past Due Forecast Days field on the Organizations tab on the Maintain Supply Network Model page. However, the past due forecast is considered from only the start of the current week or month.

  The past due forecast for consideration is brought to the plan start date and stored in the Past Due Gross Forecast measure.

• The spread forecast is stored in the Gross Forecast measure, and the final forecast after consumption is stored in the Net Forecast measure.

• The organization's manufacturing calendar is used during forecast processing for an item-location combination.

• Demand time fences aren't supported in Replenishment Planning and hence not considered during forecast processing.

• The forecast processing functionality is enabled by default.

Process Flow for Forecast Processing

This section describes the process for forecast processing.

As depicted in the flow chart, the forecast is processed along with the sales orders, movement request demands, and transfer order demands. The consumed forecast is subtracted from the spread forecast for calculation of the net forecast. Finally, the replenishment orders are calculated.