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 Example 2 for the Preparation Service for the LI-Based Forecast

 

  • You have assigned the following BOD to product Y:

    The entry location Chicago has the following child locations:

    • Stockholding location New York

    • Stockholding location Rome

    • Stockholding virtual child location(vCL) Chicago

  • In the entry location Chicago you have assigned a leading indicator group, which contains the leading indicators Installed Base and Number of Uses.

  • You have assigned the Number of Uses leading indicator to product Y.

  • Product Y is not part of a supersession.

  • In the service profile for the distribution service for the leading-indicator-based forecast you have set the Read BOM of LI flag.

  • In period 06.2005, the entry location Chicago had an aggregated demand of 11 items of product Y.

  • In period 06.2005 you have the following equipment on the market:

    • Equipment A

      The demand for equipment A occurred in the New York location. This equipment has been assigned an equipment BOM with the following items:

      • 4 of product X

      • 4 of product Y

      • 1 of product Z

    • Equipment C

      The demand for equipment C occurred in the Rome location. This equipment has been assigned an equipment BOM with the following items:

      • 10 of product X

      • 8 of product Y

  • You have not defined any selection criteria for your equipment.

Demand History for the Leading IndicatorNumber of Usesfor Product Y

For product Y, the preparation service proceeds to determine the demand history of the assigned leading indicator Number of Uses as follows:

  1. The preparation service determines the first stockholding locations for product Y as follows:

    • Product Y occurs in equipment A and equipment C.

    • The demand for equipment A occurred in the New York location. This location is stockholding. Hence, a location product of product Y is location product NewYork_Y .

    • The demand for equipment C occurred in the Rome location. This location is stockholding. Hence, a location product of product Y is location product Rome_Y .

  2. The preparation service reads the key figure Number of Uses for the location products from the InfoCube SPP: Installed Base Key Figures ( 9AIBASKF ) that were determined in step 1.

    For period 06.2005 the Number of Uses for location product NewYork_Y is 10, for example, and 12 for location product Rome_Y .

  3. The preparation service aggregates the values of the demand history for the leading indicator Number of Uses along the BOD for product Y as follows. It thus gets the demand history for the leading indicator Number of Uses at entry location level:

    LI value NewYork_Y + LI value Rome_Y = 10 + 12= 22

  4. The preparation service determines the historical value of the coefficient for period 06.2005 as follows:

    Final demand for spare part Y in per. 06.2005 / value of dem. hist. of LI in per. 06.2005 = 11 / 22 = 0.5