Forecast Consumption V1.1

8/10/2019 Forecast Consumption V1.1

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Forecast Consumption in ASCP

Forecast consumption is a process in which an estimate of demand is replaced byactual demand. Forecasts are estimates of demand and sales orders are actualdemand. Each time you create a sales order line, you create actual demand. If the

actual demand is already forecasted, the forecast demand must be decremented bythe sales order quantity to avoid countin the same demand twice. So enablinforecast consumption ensures that demand is not duplicated when we ive it asinput to a supply plannin process.

In a forecast consumption process the forecast quantities are relieved based on theschedule shipment date in the sales order line. !he followin e"ample e"plainsforecast consumption process based on scheduled shipment date.

#et$s assume that the forecast %in wee&ly buc&ets' for a roller assembly ()*)+ is asiven below

#et$s now assume that you receive a sales order %S-/' for ()*)+.S-/ is for 01 nos. and has a scheduled shipment date of () in 2ee& 3In case of S-/ the forecast consumption process will loo& for a forecast entry inthe same wee& as that of the scheduled shipment date and the forecast for thatwee& %23 in this case' will be consumed by the sales order.

So after forecast consumption the new demand statement will be as iven below.


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4ac&ward and Forward consumption days

In forecastin process it is quite di5cult to et accurate forecast 6ures on speci6c

days. Instead the total forecast numbers over a span of time tend to be much more

accurate than daily estimates. So it is desired that a sales order consumes forecast

spread over a prede6ned span of time around its scheduled shipment date insteadof consumin only the forecast available on the scheduled shipment date. !his is

enabled by specifyin the bac&ward and forward schedulin days in the forecast

set. %Forecast set is nothin but a roup of multiple forecasts7..for e. 8ou may

de6ne a Forecast Set to hold the forecasts 9(emand estimates of :orth America;

and 9(emand estimates of oin bac& by ) day

ta&es the consumption process into (1 of 20. !he forecast for 20 is 1. It ets

consumed totally.


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In out e"ample the consumption process will o forward in 2? and 21. Forecast of *

nos. in 2? ets fully consumed and 0 nos. will et consumed from the forecast of

21.!he demand statement now loo&s as iven below7

#et$s now assume that you receive a sales order %S-/)' for ()*)+.S-/) is for )1 nos. and has a scheduled shipment date of (0 in 2ee& ?.In case of S-/) the forecast consumptions will also start at its scheduledshipment date and it will consume from the current quantities available in theforecast. %Current quantity is the quantity left over in the forecast after consumptionby previous order'.

!he total demand statement now loo&s as iven below


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Setups involvedFollowin setups are involved to enable forecast consumption in ASCP.

Setups Involved

). (e6ne forecast control attribute for items forecasted.0. (e6ne consumption enabled forecast sets in the source instance3. (e6ne bac&ward and forward days for forecast sets?. (e6ne outlier percentae for forecast sets1. Collect data and specify forecast sets to be used in the demand schedule

in the 9raniBations; tab of plan options.. Enable 9Include Sales rders; chec& bo"./. Chec& 9consume by forecast buc&et; if you want to allow only those Ss

fallin in a forecast buc&et to consume forecast of that forecast buc&et.*. Ensure that #aunch Snapshot is set to 8es while launchin the supply

chain plan as forecast consumption in ASCP happens durin the snapshot

phase.


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Approach to decide collection time-spans for past due forecastsand closed orders

ption )

!he above scheme of thins will wor& e@ectively if the forecast accuracy levels are

hih %close to + or more' over the span covered by %4ac&ward G forward' days7

i.e. 3 in our case. Hiher levels of accuracy mean there is minimal possibility of

havin unconsumed forecasts in this time span. So no need to loo& too much in past

to 6nd out unconsumed forecast7hence the abovementioned span for collectin old

forecasts would be su5cient.

4y collectin shipments as old as 9forward consumption days; we ensure that the

claims on current wee&$s forecasts by all possible sales orders are visible to ASCP.

Since the collection time span for old forecast is more than time span for Ss by

9bac&ward consumption days; we ensure that all possible forecasts from which the

oldest shipment can consume quantities are visible to the consumption process.

Current 2ee&

%(ay of plan run'

Shipment Collection

Span = Forward

consumption days

Shipment Collection Span =

Forward consumption days


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ption 0

If the level of forecast accuracy is not hih in the time span covered by %4ac&ward G

Forward' days then

A' 2e can suest update of bac&ward and forward days in such a manner that

forecast accuracies are hih over this time span. nce this is done 7ption ) can

be followed to decide collection time spans for old forecasts and shipments.

Forecast Consumption V1.1

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