Forecast Consumptions
By default, the Supply Plan Calculations (MRP) uses today's date as the Plan Start Date.
The Supply Plan will include all current period forecasts with the Starting Date before the Plan Start Date.
Why Forecast Consumptions
For example, if the Inventory Period Type = By Month and today's date = 3/26/20, the Sales Forecast for the current month with the Forecast Date of 3/1/20 and future months with the Forecast Date of 4/1/20, 5/1/20, etc. will be included in the demand calculation.
Secondly, there could be sales orders entered with a Shipment Date for the current month and for future months.
To not overstate the demand, the Supply Plan must calculate the forecast consumption based on the sales order quantities and forecast quantity.
For example, the forecast demands for 3/1/20 and 4/1/20 are the following:
Forecast Date | Quantity |
|---|---|
3/1/20 | 150 |
4/1/20 | 150 |
There are 3 Sales Orders entered with Shipment Dates that are in the current month or future months.
Order No. | Order Date | Shipment Date | Order Quantity | Outstanding Quantity |
|---|---|---|---|---|
1 | 1/1/20 | 2/1/20 | 100 | 0 |
2 | 2/1/20 | 3/1/20 | 100 | 0 |
3 | 2/10/20 | 3/10/20 | 100 | 20 |
4 | 3/10/20 | 4/10/20 | 100 | 100 |
Demand Quantity
When the Supply Plan calculates existing sales order demand, it will include orders #3 and #4 because their Outstanding Quantity > 0.
Without forecast consumption, the total demand with forecast and sales orders will be the following:
Period Date | Quantity |
|---|---|
3/1/20 | 170 (forecast quantity for 3/1/20 (150) + outstanding quantity on sales orders with the Shipment Date within the month of March (20) |
4/1/20 | 250 (forecast quantity for 4/1/20 (150) + outstanding quantity on sales orders with the Shipment Date within the month of April (100) |
Consumption Quantity
The forecast consumption compares the total order quantity and the forecast quantity for each of the periods. The lesser amount will be used as the consumption quantity.
To calculate forecast consumption, orders 2, 3, and 4 must be included because their Shipment Dates are > 3/1/20.
Period Date | Consumption Qty. | Reasons |
|---|---|---|
3/1/20 | 150 | 150 forecast qty < 200 total order qty. |
4/1/20 | 100 | 100 total order qty < 150 forecast qty |
Net Demand
The Net Demand quantity will be the calculation of the Demand Quantity minus the Consumption quantity for each period.
Period Date | Quantity | Reasons |
|---|---|---|
3/1/20 | 20 | 170-150 |
4/1/20 | 150 | 250-100 |