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DP Forecast Strategy

Former Member
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Hi Experts,

May I kindly ask for your help. I am trying to find a forecast strategy suitable for procurement that will output the number of products that should be procured per month per year.. given a total cost that should only be spent per year.. say only 50Million per year should be the cost for procurement

Hoping for your help.

Thanks a lot.

Ria

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Ria,

Sounds like you are doing target planning.

Here's one way:

You'll need two key figures, KF1 and KF2.

You'll need a planning buckets profile at a monthly level and another one at yearly level.

You'll need a data view with monthly planning buckets and another one with yearly buckets.

1. Generate your forecast normally, based on statistical methods, in the data view with monthly buckets. Put that result into KF1.

2. Enter your target ($50M?) in KF2 in the data view with yearly buckets. Include KF1 in this data view as well.

3. Redisaggregate KF2 against KF1 using a macro in the data view with yearly buckets. Drilling down to monthly buckets, you should seethat KF2 now follows hte curve of KF1.

This way you'll be able to use KF2 to drive procurement. KF1 is just the way to generate the disaggregation profile.

I've simplified this greatly but this is the basic idea. I hope it helps!

Dan

Answers (1)

Answers (1)

Former Member
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Hi Experts,

May I kindly ask if my previous question is not possible, if there are any designs in apo that will cater to that kind of problem?

Am really hoping for your help.

Thank you very much.

Sincerely,

Ria

Former Member
0 Kudos

Hi Ria,

I have not known of a direct solution for your requirement, but I can suggest a work around. You can get your deliveries from R/3 to APO in terms of USD, rather units (EA) and have a P.A with UOM as USD. Now you will have Sales history in terms of USD and the system will forecast and suggest in USD.

After the forecast has run you can have a custom macro run which calculates the total USD for a year and pop up some alerts.

Thanks,Bopanna