forecast consumption

[Former Member]

Hi,

I have a forecast of 20 at DC and in the second case a sales order of 20 and in the third case demand + Sales order of 20+20 = 40.

when I run Heuristic, the demand in all three cases will flow to factory.

I do not know how the forecast or the sales order will get consumed in all three cases

Regards,

SS

[former_member209769]

Hi SS,

Ashok already explained with some examples. Let me add to it.

Requirement Strategy is the key for getting total demand and for consumption of Forecast by Sales Orders.

If you talk about consumption of forecast by Sales Orders, then in 10 (MTS), no consumption of forecast happens. With 20 (planning with final assembly), SOs will consume the forecast.

With 10, Sales Orders are not relevant as demand. Only forecast comes into picture outside the forecast horizon.

With 20, within the forecast horizon, you would have only the Sales Orders as demand, and outside of forecast horizon, total demand would be sum of forecast (unconsumed forecast) & sales orders.

Pls note that the above comments are only with respect to SOs and forecast. Other demands like dependent demand, distribution demand, etc would also be considered when calculating total demand.

Hope this helps.

Thanks - Pawan

[Former Member]

Hi All ,

Thanks so much.

I had two continuation questions to this

1. In Strategy 20, for Instance if I have a SO of 100 and Forecast of 80.......Then I assume, the total demand would be taken as the higher of the two ie it will take 100 and not 80. During the consumption process, the sales order of 100 will consume forecast of 80 and so the resultant demand of SO 20 would be planned subsequently.....Am I correct??

2. I was actually running Heuritic with Planning straegy 20 and forecast hoizon (SNP 2 Tab) of 50 days. The Heuristic run did not generate the STR's but when I changed the strategy to 10, Then STRs were generated.

Kindly help me.

Regards,

SS

[Former Member]

Hi Sriman,

Query 1:

It is the forecast that is consumed, not the sales order.

In this example, the forecast of 80 will be consumed by sales order (you will not be able to see the forecast in the Elelmets tab of product view. But you can see the consumption details in the Forecast tab (detail sub tab)

Query 2:

Strategy 10 or 20 the qty of forecast considered will be the same If you have sales order KF in your data view.

If you do not have sales order KF, with 20, the forecast could have been consumed and that is why it would not have planned.

But when you use it along with forecast horizon, Forecast will not be considered for both strategy 10 & 20. Sales orders will be planned in 20, nothing will be planned in 10.

But we have observed some bugs in Strategy 10 + Fcst Horizon (in inital tab). If Forecast is still planned with forecast horizon in strategy 10 you may need to raise this with SAP.

Please note that the strategy at the time of demand creation can cause some inconsistency (a guess from our experience). So to observe actual behavior, it is better to delete all forecast & sales orders in system. Change strategy, relelase forecast, Do sales order CCR to pull in th orders again and then do your test runs.

This will be a cleaner approach and help you understand the actual impact of strategy changes.

Regards,

Ashok

[former_member209769]

Hi SS,

For 1, Ashok already clarfied. Total Demand would be only for Sales Orders. You won't see the forecast as they are already consumed by SOs, and during planning, system would plan to cover SO demand of 100.

2. Haven't seen this kind of issue. If you only changed the strategy and nothing else changed, then Looks like SAP bug, so please approach SAP as recommened by Ashok.

Thanks - Pawan

[Former Member]

Thanks so much to all.

I am closing this case

SS

[Former Member]

Hi Sriman,

Depends on the requirement strategy that you are using for your product in APO.

(I am keeping S.O qty above FC to demnstrate consumption + total demand calc)

Case 1:

Sales order -20

Strategy 10:

Total demand = 0

Strategy 20:

Total demand = 20

Case 2:

Forecast -10

Total demand is 10 for both strategies

Case 3::

Forecast -10

Sales order -20

Strategy 10:

Total demand = 10 (sales order does not consume FC)

Strategy 20:

Total demand = 20 ( SO consumes FC)

Regards,

Ashok