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SNP Heuristics & Forecast Horizon

Former Member
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Hello Gurus,

Please advise.

I am in SCM7.0.

Does SNP Heuristics consider Forecast Horizon ?

based on documentation Heuristics seems to support this functionality.

But when i execute heuristics with the forecast horizon maintained i noticed this is not working as expected.

I have created a macro to clear out demand data with in this horizon before running the heuristics but still wanted to know if i am missing something.

Thanks in advance

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi Shyam,

Consider the following two SAP Notes.

1832315

1857847

Maybe one of them is appropriate.

Best Regards,

Mike

Answers (3)

Answers (3)

Former Member
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Hi Shyam,

For solution of your query you may go for the below mentioned link:

http://www.saptechies.org/forecast-horizon-ignored-snpheuristic/

Here you'll get the solution for the Forecast horizon is ignored in the SNP-Heuristic where note 1832315 will provide you the complete guide to solve the problem you are facing.

Thank You.

Former Member
0 Kudos

Shyam,

What is not working ?

Forecast Horizon is a kind of fictitious concept that uses a convenient "logic" for calculation of TOTAL DEMAND.

According to SAP,

Within the forecast horizon, Total Demand = sales orders quantity (or customer demand quantity). In other words within the forecast horizon, forecast is not considered as demand. Even more simply put there is no fun is planning against forecast when you are in a time horizon where you are supposed to deliver whatever demand you managed to generate against the forecast. This is also partly configurable using the forecast consumption settings. In total demand there can be other demands like dependent demand and distribution demand,


Beyond the forecast horizon,


Total demand = Forecast + sales orders !

So, you need to evaluate the results in conjunction with SNP production horizon and other settings  to see if the arithmetic is as expected by you i.e. what is working and what is not working.

Note all this is configurable. Important thing is SNP can only plan for products with make to stock planning strategies because it is only for make to stock products that SNP makes business sense. This is the reason why SAP gave you the feature of being able to control what your total demand SHOULD be within and beyond forecast horizon. Not all may agree with this. So people change this logic. See if in your system someone did something non-standard.

Hope this generic answer helps your research

Thanks

BS

satish_waghmare3
Active Contributor
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Hello Shyam,

Forecast Horizon is number of days when the forecast is not considered as part of the total demand. Beyond this horizon, SNP calculates total demand as either the forecast or the sales orders (whichever is greater) plus the other demand (dependent and distributed demand, planned and firmed). Note- Forecast Horizon is a key in the calculation of Total Demand.


Most certainly Forecast horizon is considered during the heuristic run and in interactive planning too.

Hope this will help.

Thank you

Satish Waghmare