Consuming the forecast

Has anyone been successful in haveing customer orders consume the forecast for an item. Thus far I have only been able to generate additive demand… forecast + orders = Total demand. The result I am looking for is forecast - orders = Total demand(orders + remaining forecast). Any thoughts would be appreciated.

In Navision the standard use of the forecasting is very simple when used to generate requirements. Essentially within the future period of demand generation the forecast is regarded as a gross requirement due on the forecast date. If actual requirements appear within the forewcast period the forecast quantity is reduced from a planning perspective. If the forecast is in the past, then it is not taken into consideration. You seem to be not seeing this - do you have a forecast and demand at different locations? Do you have any modifications? Are you set-up correctly? (difficult one to answer that [:D]). What version are you running?

Hi Steven, Regards to this, If you setup in the Planning to be MRP and MPS combined then it will net of the Forcast. But the after the planning run and the Production Orders, posting (satisfied the Orders). the system reassigns a new order based on the Forecast.

Hi Reichend, As Mr.Steven has written, Actual Demand due to the Sales Order will consume the Forecast Demand for the same period. May be,in your case, the period of Forecast and Sales Order due date are not forming part of the same Planning Period/Forecast Period. Check it out. Also as Mr.Prashanth has written, if you are trying once again (after creating production orders, posting output and posting the sales order in question), system will again suggest the Production Orders depending on the order dates(Order start date and end date) you selected while running the planning worksheet, as the Forecast Demand remains intact(Unless u change it). Regards. A.Kashinath.

Thank you for your suggestions. I am on V 3.6. I will verify the settings and report back with my progress. Regards,

Hi, sorry for the intrusion … I have another question about Netting problems! I noticed (on 3.60) this feature that I cannot explain: I inserted 3 forecasts for the same item for 3 different data and for the same location; running MPS engine only the last one is considered in the planning worksheet (no Sales Order, No on-hand quantity). Eg: Forecast 10Aug - item XX - quantity 1000 pcs -location Y Forecast 20Aug - item XX - quantity 2000 pcs -location Y Forecast 30Aug - item XX - quantity 1 pcs -location Y MPS suggests a Production Order for Quantity = 1 I expected MPS to suggest a Production Order for 3001 pcs… Do you have an idea about how to solve this problem? Thanks a lot Francesco

Hi famore Where to start [:D] Lets start at the beginning, always a good place! On the item card on the ordering tab you have a “requisition method code”. Drilling down into this you will see the specified selections for the code in the field - can you tell me what these are. I am sure if this is set to MTO you will understand teh reason yourself.

Hi Steven, Thanks a lot, actually ‘Requisition Method code’ is set it to MT0; setting it to MTS the planner works correctly. The last question: Which of MTO parameters is responsible for this behaviour of the system? Thanks again Francesco

Hi Famore Simply, it is the reordering policy field. In MTO this is set to “Order” where the program generates an order for each requirement. The others are: Fixed Reorder Qty - reorder qty or net requirement is ordered. Maximum Qty - quantity in the maximum inventory field is used (or net req.) Lot-4-Lot - demand is filled within the reorder cycle. Blank - MRP ignores it! I think thats it [:D]

Hi Steven, thanks for your kindness…and I really hope not to bother you too much! Maybe in the first question I was not clear about my problem: ONLY the last forecast is taken into consideration: With this situation Forecast 10Aug - item XX - quantity 1000 pcs -location Y Forecast 20Aug - item XX - quantity 2000 pcs -location Y Forecast 30Aug - item XX - quantity 1 pcs -location Y MPS suggests ONLY a Production Order for Quantity = 1 I expected MPS to suggest MORE Production Orders for a Total Quantity of 3001 pcs… so with MTO policy I would expect 3 POs: the first for 1000 pcs, the second for 2000pcs , and the last one for 1 pc. Anyway… I will think on it! Thanks Francesco

Hi Francesco So therefore you need to look at the stock you currently have, the demand fulfillment in prograss and the dates you are running the MS/MRP for (obviously in combination for the dates you have loaded your forecasts on). If you have orders for 1000, 2000 and 1 in an MTO environment with insufficient stock and no fulfillment running MS/MRP for the correct date then three orders should be generated. I think this is where we came in - where do we start [:D]

OK Thanks Steven Francesco

Ciao Francesco, I tried to replicate your scenario and MPS suggested correctly 3 orders I guess your problem is due to the dates you used. Elena