Plan for Forecast Demand that Doesn't Identify a Fulfillment Organization

Hello. My name is Rahul. Welcome to demo for supply planning in Oracle Supply Chain Planning. In this session, we talk about plan for forecast demand that does not identify a fulfillment organization. With this enhancement, you can plan for the forecast published at a global level without the context of an organization. You can consume the forecasts without a reference to a shipment location.

Forecasts are consumed at the global level with reference to a ship to consumption level. The unconsumed global forecast are distributed to various shipment facilities or organizations based on the sourcing rules and split percentages defined. With this update, you can plan for the demand without specifying the distribution or manufacturing location that will fulfill the demand.

This feature is supported for both unconstrained and constrained supply plans. It is also supported for supply plan and demand and supply plan types. For this demo, a demand and supply plan in unconstrained mode is created. The forecasting time level is Week, and supply plan is planned in daily buckets.

Now, let's look into the Demand tab. The input measures is final shipment history, and the output measure is shipment forecast. The forecast buckets are set to 14. The safety stocks are not planned in this plan, so let's navigate to the Supply tab. In General tab, you can select the options as needed. The assignment set is specified here would be used in supply planning, and there is no change in the existing behavior.

Now, let's navigate to Forecast Allocation and Consumption tab. In Forecast Allocation and Consumption tab, a new plan option is introduced to specify the global forecast spreading calendar. This plan option is enabled when forecast spreading is set to Spread forecast evenly. The spreading calendar is 5-day working in this plan. The existing forecast consumption parameters such as backward and forward consumption buckets, consumption bucket types, et cetera, and logic to consume the forecast applies for global forecast as well.

In this plan, the backward and forward consumption bucket type is set to 1 Day. Another plan option, forecast distribution assignment set, is introduced to specify the assignment set for global forecast distribution. This is separate from regular supply planning assignment set in general tab, and it is used only for global forecast distribution. The global forecast is distributed based on the sourcing split percentages as defined in the sourcing rules associated with this assignment sets.

Let's navigate to Organizations and Schedules tab. Here, the global demand schedule is plan name itself. And it is a demand and supply plan. Click on, Measure Levels. You can select different measure levels at which the global forecast is published into supply planning. Select Demand Class as one of the levels. You must select a null or blank value for the organization dimension for supply planning to recognize the global forecast.

If the organization level is populated, then the demand schedule is considered to be a local forecast. Let's select Null Value for the Organization dimension. A seeded hierarchy, Customer Zone, is added to the Customer dimension. This hierarchy is populated only when organization level is selected as Null. Select this hierarchy. This hierarchy contains the Zone level. For this plan, global forecast is published at Item, Demand Class, Zone, and Week level.

Now, let's go back and select the Ship-to Consumption Level. Since both Demand class and Zone measure levels are selected, the Demand class and Zone Ship-to Consumption Level is also populated in the list of values. Select Demand class and zone as the Ship-to Consumption Level. So, once you set up all the plan options, you can save and run the plan.

Let's look at the forecast distribution assignment set that we have specified in the plan options. In this assignment set, different sourcing rules are specified to distribute the global forecast at different assignment levels. Let's view the sourcing rule, GL5050, specified at item, demand class, and region assignment level. This sourcing rule is honored when the global forecast is for item JB-SB-GLOBAL-A, demand class East-EX8, and the zone is GBZONEAUTO1.

Let's click on View Sourcing, to review it. In this sourcing rule, the global forecast is distributed to organizations EX8:M1 and EX8:M2, with allocation percentages set to 50 and 50 each. Now let us look into other sourcing rules as well. The sourcing rule GB-GL6535 is assigned at lesser granular level of Item and demand class. This sourcing rule is honored when the global forecast is populated with Item and demand class.

In the sourcing rule GB-GL6535, the global forecast is distributed to organizations EX8:M1 and EX8:M2 with allocation percentage as 65 and 35, respectively. Let us look into another sourcing rule. The sourcing rule GB-GL7030 is assigned at Item and region level. This sourcing rule is honored when global forecast is populated with item and zone. In the sourcing rule GB-GL7030, the global forecast is distributed to organizations EX8:M1 and EX8:M2 with allocation percentage as 70 and 30 respectively.

Now, the plan run is complete, and you can analyze the ship and forecast. The final shipping forecast is 750 each week for different levels such as item week and demand class. To analyze the new global forecast measures, I created a pivot table at item, demand class, and zone levels. Since the spreading is on, global forecast are distributed 150 each day as per the spreading calendar for global forecast.

The sales order for quantity 200 on 1/16 with zone GBZONEAUTO1 and demand class East-EX8, consumes the global forecast of quantity 150 fully on 1/16 and partially on 1/15. Remember that backward and forward consumption bucket days are set to 1. The sales order for quantity 400 on 1/17 with same levels consumes the forecast of quantity 150 on 1/17, then, there is nothing to consume on the previous bucket, which is on 1/16. It moves forward and consumes the forecast on 1/18.

Since there is no forecast left with demand class and zone combination in the entire bucket length, the sales order for quantity 400 consumes the forecast on 1/17 with zone, GBZONEAUTO1, and null demand class. The remaining global net forecast is 50 on 1/17. As you can see, the global net forecast is 50 on 1/17. Similarly, the sales order on 1/16 of quantity 500 with zone, GBZONEAUTO1, and demand class West-EX8, consumes the global forecast fully on 1/16, 1/15, and 1/17.

Since there is no forecast left with demand class and zone combination in the entire bucket length, sales order consumes the forecast partially for quantity 50 with zone, GBZONEAUTO1, and null demand class. The global net forecast on 1/16 is 100 after consuming with zone, GBZONEAUTO1, and null demand class.

After consuming the global forecast, supply plan distributes the global forecast to Ship-from Organizations, based on the sourcing rules and the split percentages as defined in the forecast distribution assignment set. For this demo, I created a two panel structure to analyze the global forecast distribution. The top panel has the global forecast measures, and the bottom panel has the net forecast and sales order measures.

The unconsumed forecast of quantity 100 on 1/15 with zone, GBZONEAUTO1, and demand class EAST-EX8, is distributed to Ship-from Organization EX8:M1 and EX8:M2 with quantity as 50 and 50 as per the split percentages in corresponding sourcing rule define. Similarly, all other global forecasts are distributed to respective ship from organization based on associated assignment types and sourcing rule as we can see in this particular table view.

After global forecast distribution, Supply Plan will continue to plan for demands in various ship from organizations using the existing behavior. This concludes the demo. Thank you for listening.