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How does SNP handle unconsumed forecast for a certain period

Former Member
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Hi Folks

I am exploring a situation where the all the forecasted demand from DP, for certain period, will not be consumed in SNP.

Say, for product A, there is a forecast of 100 pcs for month of Sep and a forecast of 100 pcs for the month of Oct in DP which is then released into SNP n monthly buckets.

Now a actual demand of 90 comes in (say in the form of sales order) for the whole period of Sep. and consumes the forecast. What happens to the unconsumed forecast of 10 in the month of Sep? Does it get rolled over into month of Oct and become 110 pcs and snowballed similarly over a period of time ?

Is there a option that we can restrict the roll over into next period ? any idea folks ?

How does SNP usually handle the unconsumed forecast? Can we delete it frequently ?whats the usual scenario ?

TIA

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Answers (4)

Answers (4)

Former Member
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Hi Krishna,

You may be able to accomplish this by using a combination of the two transactions:

/SAPAPO/MD74

/SAPAPO/RLCDEL

Any forecasts that are older than the beginning of the current calendar month are 'reorganized' using transaction /SAPAPO/MD74. This will consume any forecast that lies in the previous calendar month. If you simply delete the forecast from previous calendar month, it may be possible to have a large open sales order from last month consume forecast in the current month (depending on what your forecast consumption settings are). You can create a variant that dynamically retrieves the beginning of the current month in a variant for /SAPAPO/MD74.

You can then manage forecasts that are older than the beginning of the previous calendar month by deleting them with transaction /SAPAPO/RLCDEL. If you have any open sales sales order from that long ago, they will appear as a shortage and be counted as a new requirement, over and above any current forecasts.

Preventing a sales order from consuming forecast into the next calendar month is a little more complicated, you'd likely need to use a BAdI to dynamically adjust the consumption dates when the orders are integrated into liveCache (i.e. right when they come across the CIF).

Dan

Former Member
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Hi Dan

When you mentioned 'reorganized' using transaction /SAPAPO/MD74, I am understanding that any unconsumed forecast from previous period will NOT be deleted and will only be consumed by sales orders, in CURRENT period. Is that right ? If so, in the product view (rrp3) are the pegging relationships changed ?

Say my Consumption mode is Forward 30 days and Backward 30 days, then system always looks for unconsumed forecast in previous 30 days and then move forward upto 30 days. Then what is the advantage we are gaining by using /SAPAPO/MD74 ? Does using the Requirements Date option in /SAPAPO/MD74, overwrite the Forward and Backward period specified in consumption mode ?

I had further noticed that /SAPAPO/MD74 also has the option where the forecast requirements are either deleted from the system or adjusted to the quantities in the sales orders.

I also noticed that there is no variant option in /SAPAPO/MD74. Are you referring to setting this up elsewhere ?

Any idea on whether /SAPAPO/MD74 be run as a background job ?

I was also wondering whether using /SAPAPO/RLCDEL deletes the Forecast requirement or only the Planned orders or Purch Reqs?

Former Member
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Again, in the realistic scenario, when would there be a unconsumed forecast for certain period when the consumption is driven by consumption mode? say Fwd+Bwd with 30 days in each period.

Say we have forecast of 100 for Sep, Oct & Nov. Say system did not get any sales order in Sept at all and say it recieved a sales order of 100 on Oct 30. It would consume the forecast of 100 from Oct. Now assume that the next sales order is recieved on Nov 03 for 150. So this would not consume the left over forecast of 100 from Sep , rather it would go forward to consume the forecast in Dec.

As discussed in the above example, if we are trying to re organize or delete the unconsumed demand from a month previous to the previous month doesn't it really mean that there are really some forecasting errors in either chosing the forecast model as there ws no demand at all in a month?

So what are the impacts of having unconsumed demand in the system ? Can we just leave it instead of deleting it? any cons of doing this ?

Does the system always generate a planned orders/purch requistions in the SNP Hueristic run for the forecasted demand regardless of whether the forecast is consumed or not, based on the requirement strategy of 10 or 20 ?

Former Member
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Hello Krishna,

I will try to take these questions in order:

When you reorganize the forecast for the previous month, forecasts are not deleted - they are adjusted to match the sales orders. The pegging is not affected in this case. Current month would not be affected as long as you set date ranges appropriately.

With your forecast consumption settings of 30 back/30 forward, the advantage of using /SAPAPO/MD74 is that a sales order from this month can't consume forecast from the previous month. This is good thing if your orders were much greater than forecast in the current month, since MFG might not get the signal to build more if you let the order consume into last month.

The requirements date range does not overwrite the forward/backward settings for consumption. The system simply won't find any forecast to consume in the previous month if the '30 back' range happens to cross into the previous fiscal month. If you wanted to change the forecast consumption date range for the sales order as they are integrated into liveCache, I think you'd need to use a BAdI (/SAPAPO/SDP_GET_DEM??).

We actually use the forecast reorganization function as part of a process chain (transaction RSPC) in APO, but we created the variant in the /SAPAPO/MD74 transaction. Is there an access issue to create variants in your case? In the process chains, the process type is "Planned Independent Requirement Reorg. - Adjust Requirements " and is located in the node for "SCM - Planned Independent Requirements". The program name is the same whether in the transaction or in the process chain - /SAPAPO/RM60RR20.

With RLCDEL, you can specify what gets deleted by the category that you pick. To delete the forecasts, use category "FA" (assuming that's what category your forecast is -- could also be "FC" in some implementations).

Dan

Former Member
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Hi,

Will add soemthing more to above message.....

Forecast is an estimate of demand for a specific period. Once that period is over ,it shud not be added to forecats of next period.Esimate of next period is seperately taken care during forecasting.Just because estimate in month of Sep was wrong and so it is not consumed , one should not add it to estimate of next month-Oct.It doesnot make sense.You will add extra forecast ( unconsumed forecast of Sep) to alreday forecasted quantity of Oct.So in a way its an overestimate ( forecast) in Oct.

Now coming to what will happen if therere is unconsumed forecats in period of Sep because fof some reaosn. Sep is alreday over and you are doing planing in Oct .In this case ,unconsumed forecast will appear in intial column in planning book.Better way is to delete the old forecast by deletion program.

rgds

Nil

Former Member
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Hi Krishna,

To add further, the production proposal is for 100 & it is turned into stock, which will appear for the next month as FG stock for 10 quantity that will be taken care for generating the Oct months production proposal.

Also if in SNP you are using CTM in specific you can very well instruct the engine to disregard past demand after a specific time period. In your case you can maintain it at 30 days.

So you can manage such demands accordingly.

Best regards

Sanjeev G Joshi

Former Member
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Hi Krishna,

To add further to what Sanjeev wrote, If you want to disregard the past demand in SNP Optimizer after a specific time period. You can very well do it using the Max delay allowed field in SNP2 View of Product location Master. So if you want your demand not to be considered after a week you can enter the Max. Delay allowed as 7.

Moreover, If you want to consider demand on a monthly basis i.e. past month's demand should not be considered at all in the current month, its better that you delete the same through /SAPAPO/RLCDEL creating a background job and scheduling on the last day of the month.

Hope this helps...

Regards,

Manjit

Former Member
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Hi,

In teh scenario given by you , I understand that Planning Strategy is 'Planning with Final Assembly" wherein sales orders are consuming forecast,...

...In Sep sales order of 90 will consume forecast and forecats will become 10 only. Still your net demand is 100 ( SO=90 + Forecast=10) . SNP will plan against this net demand of 100 and will create production plan at manufacturing plant.Once this production plan in executes =d and is taken in stock , demand ( forecast and SO) will be consumed in Sep only.

I hope this clarifies.

rgds

Nil