Using Sales Forecast Reduction in Master Planning

We have entered a sales forecast by month, style, size, color. We want the forecast to be reduced by sales orders, BOM lines and production lines. We run a forecast scheduling before master scheduling.

In our master plan, we have selected the reduction principle “Purchase/sales orders”. We think we need to use a reduction key of 100% per month. However, when we use this reduction key our forecast is reduced only by sales orders, quite literally. How do we set it up so the sales forecast is reduced also by BOM lines and production lines?

To my mind you can’t Tina, the only options to reduce forcasts are with sales and purchase orders.

You seem to be sure that new sales orders effect your forecast, have you also tested what happens by keying in purchase orders aswell?

Monty

Why would you forecast a sale of a BOM line, the forecast of the finished product that is a BOM would cascade through requirements so there is no need to forecast at this level unless you also sell it, then the reduction principle still works.

We need to place POs for BOM items long before we have sales orders. What is the appropriate forecst to enter?

As we receive sales orders, we want the forecast for BOM items to be reduced. How do we set up in AX.

How do we compare our forecast to actual demand so we can update the forecast?

How can you place a PO for something you have no idea of the critical nature of (dimensions)?

You forecast at the BOM level and the lines in the BOM are seen and planned for.

Forecast update is automatic due to the reduction principle.

Thank you. We are changing our sales forecast to that of the finished product and see the reduction principle works.