1. Using Replenishment Planning
  2. Demand Measures and Forecast Accuracy Measures

Demand Measures and Forecast Accuracy Measures

You can select predefined or user-defined measures for demand and forecast accuracy to drive the calculation of inventory policies and safety stock and improve your replenishment planning.

In the Demand Schedules section on the Organizations and Schedules subtab on the Supply tab on the Plan Options page for your replenishment plan, click the Select buttons in the Demand Measures and Forecast Accuracy Measures columns to open dialog boxes in which you can select measures.

Note these points:

  • The button in the Demand Measures column is available only if one of these conditions is met:
    • In the Demand Schedule column, you selected a demand plan.
    • In the Demand Schedule column, you selected a replenishment plan for which you've selected the Generate forecast checkbox on the Plan options page, and you've selected the checkbox in the Use for Demand Schedule column.
  • The button in the Forecast Accuracy Measures column is available only if you've selected the Calculate policy parameters checkbox on the Plan Options page, and one of these conditions is met:
    • In the Demand Schedule column, you've selected a demand plan.
    • In the Demand Schedule column, you selected a replenishment plan for which you've selected the Generate forecast checkbox on the Plan options page, and you've selected the checkbox in the Use for Demand Schedule column.
  • The button in the Demand Measures column is available if you've selected the Generate forecast checkbox on the Plan Options page. In this case, the replenishment plan is listed by default in the Demand Schedules section and can't be removed. The checkbox in the Use for Demand Schedule column is selected by default and can't be deselected.

    If you've also selected the Calculate policy parameters checkbox for the replenishment plan, the checkbox in the Use for Policy Parameters column is also selected by default and can't be deselected, and the button in the Forecast Accuracy Measures column is available.

  • The buttons in the Demand Measures and Forecast Accuracy Measures columns aren't available when you select an external forecast schedule in the Demand Schedule column.

Demand Measures

When you click Select in the Demand Measures column, the Demand Measures dialog box is displayed with these fields:

  • End Item Demand: Select a measure that will store the total forecast that will be used for the policy parameters calculation for your plan. The selected measure is used for updating of the Gross Forecast measure.
    Note: If you've selected the Enable multiechelon planning checkbox in the Multiechelon Plan Attributes section on the General subtab on the Supply tab on the Plan Options page for the plan from which you're opening the dialog box, this field will appear only if the Calculate policy parameters checkbox is selected.

    In the End Item Demand field, you can select one of the following measures from the selected plan:

    • Approved Final Bookings Forecast
    • Approved Final Shipments Forecast
    • Final Bookings Forecasts
    • Final Consumption Forecast
    • Final Shipments Forecast (This measure is selected by default.)
    • Any user-defined measure in the End Item Demand measure group in the Demand Management work area
  • Independent Demand: This field is displayed if you've selected the following in the replenishment plan from which you're opening the dialog box:
    • The Enable multiechelon planning checkbox on the General subtab
    • The Calculate replenishments checkbox on the Plan Options page

    Select a measure that will store the independent forecast that will be used along with the dependent demand that's propagated up your supply chain for calculating the replenishments for your multiechelon replenishment plan. The selected measure is used for updating of the Independent Gross Forecast measure, the value of which is reduced by the value of the Sales Orders measure for calculation of the Net Forecast measure, which in turn is used for the replenishments calculation.

    The predefined measure for this field is Final Independent Shipments Forecast.

Forecast Accuracy Measures

When you click Select in the Forecast Accuracy Measures column, the Forecast Accuracy Measures dialog box is displayed.

In this dialog box, in the Measure for MAPE field, you can select one of the following measures from the selected plan:

  • Bookings Forecast MAPE
  • Consumption Forecast MAPE
  • Shipments Forecast MAPE (This measure is selected by default.)
  • Any user-defined measure in the Forecast Error MAPE measure group in the Demand Management work area

In the Measure for Intermittent Demand field, you can select one of the following measures from the selected plan:

  • Bookings Forecast Is Intermittent
  • Consumption Forecast Is Intermittent
  • Shipments Forecast Is Intermittent (This measure is selected by default.)
  • Any user-defined measure in the Intermittent Demand measure group in the Demand Management work area

In the Measure for Average Interarrival Time field, you can select one of the following measures from the selected plan:

  • Bookings Forecast Average Interarrival Time
  • Consumption Forecast Average Interarrival Time
  • Shipments Forecast Average Interarrival Time (This measure is selected by default.)
  • Any user-defined measure in the Average Interarrival Time measure group in the Demand Management work area

The measures you select in the Measure for MAPE, Measure for Intermittent Demand, and Measure for Average Interarrival Time fields drive the calculation of safety stock for the item-location combinations in your replenishment plan.

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