Entering content frameFunction documentationRequirements Planning: Forecast Locate the document in its SAP Library structure

Use

A forecast of future requirements, based on past consumption figures, is needed to support some requirements planning methods. In some cases, the forecast is compulsory, in others, it is used to provide additional, optional information. The forecast is carried out before requirements are planned. Examples of areas in which a forecast is used are:

· Time-phased planning

You must carry out a forecast before requirements are planned, as this is the only way to effectively cover requirements up to the next date on which requirements are planned.

· Automatic reorder point planning

In this process, you are advised to carry out a forecast before requirements are planned. The system uses the results of this forecast to calculate the current reorder point and safety stock on the basis of a service level entered by you.

· Replenishment

For replenishment, you only need to carry out a forecast if you use a dynamic target stock based on a target range of coverage and a forecast requirement.

Features

A number of forecast models are available for the forecast, such as constant, trend, and seasonal models, as well as models for moving average values and weighted moving average values. You can assign a forecast model manually, or have the system determine one.

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You control the forecast in the logistics data of the article master by maintaining parameters such as the number of historical periods and factors for exponential smoothing.

If you make the appropriate settings in the forecast data of the article master, you can ensure that consumption figures for promotional goods are smoothed for the forecast by the creation of an average value. In this process, a group of related promotional periods is first determined. The consumption values in these promotional periods are then replaced by the average consumption value of the periods either side of the promotion.

You can simplify master data maintenance by creating a forecast profile containing parameter values that come up again and again, and then assigning this profile to several articles. You can also copy forecast data for a new article master from a reference article.

For further information on forecasts, see MM - Materials Management, Structure link MM - Consumption-Based Planning.

 

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