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 Indicator Number of Uses for 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