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Forecast Consumption

Former Member
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Hi Everyone,

Can Anyone please explain what exactly Forecast Consumtion in APO is??????

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

you do forecasting in DP and send the forecast to SNP. if you have planning strategy as 40 ( in R/3 which is 20 in APO) it means you want the incoming/ old sales orders to consume the forecast when the planning in APO takes place, because you dont want to double up the requirements .

for these settings you maintain consumption settings - consumption mode (forward, backward, backward then forward), forward consumption and backward consumption ( for ex. in days )

let me know if you want further clarifications..

cheers.

Answers (2)

Answers (2)

Former Member
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Hi Karthik,

1) Forecast consumption is a central function in SAP APO and ERP systems

2) It is an integral part of the SAP APO planning process.

3) Consumption is the comparison of two order types. One or more order types that represent actual requirements can then use up or consume another order type.

4) More specifically in SAP APO planned independent requirements are consumed by other order types, such as sales orders, dependent demand, or transfer requests.

5) The purpose of consumption is to ensure that requirements are not duplicated in the system and that the most detailed requirements are used. Forecasts and sales orders are for instance both requirements

6) Since a forecast is less specific than a sales order, it is reduced when other more specific requirements, such as sales orders, exist for the same product. In this way if both forecasts and sales orders are used to generate receipt elements, for example planned orders, the correct quantity is always generated.

7) How the system consumes the forecast depends, of course, on the business strategy that you have decided on for planning. A make-to-stock situation has different needs as a make-to-order scenario, in which there are components with long lead times.

😎 Consumption is fully integrated with ERP systems using the Core Interface (CIF). This means, for example, that changes to sales orders in an ERP system are taken into account immediately in SAP APO.

9) Consumption takes place in order liveCache.

10) This means that the forecast is not consumed in Demand Planning

Regards,

R. Senthil Mareeswaran.

aparna_ranganathan
Active Contributor
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Hi Karthik ,

Let me give you a broad idea. Forecast is a requirement that is not firmed. When a sales order comes in then it will eat the forecast , thus reducing the forecast value. That is lets say for this week you have a forecast of 40 units. When a sales order for 20 units comes in for the material for this week , then your forecast will get reduced to 20 units . So your total demand will still be 40 units (the same as before). In this case the sales order that came in has consumed / used up your forecast .

After the forecast of the current period is completely used up , the sales orders that come in can consume the unconsumed forecast of the previous periods or periods in the future , depending on your consumption parameters . The consumption parameters can be found in product master demand tab.

Thanks

Saradha