Forecast Consumption

Forecast consumption replaces forecasted demand with actual sales order demand. Each time you create a sales order line, you create actual demand. If the actual demand is already forecasted, the forecast demand must be decremented by the sales order quantity to avoid counting the same demand twice.

The Planning Manager is a background concurrent process that performs automatic forecast consumption as you create sales orders. Forecast consumption relieves forecast items based on the sales order line schedule date. When an exact date match is found, consumption decrements the forecast entry by the sales order quantity. Other factors that may affect the forecast consumption process are backward and forward consumption days and forecast bucket type. When you create a new forecast — especially from an external source — you can also apply consumption that has already occurred for other forecasts to the new one.


Consumption within a Forecast Set

Consumption for an item and its corresponding sales order demand only occurs once within a forecast set. For example: Item A, belongs to both forecasts within the set. Some possible scenarios and how consumption would work are:
• If the sales order quantity is less than the forecast quantity of each forecast, only one of the forecasts for Item A is consumed.
• If one of the two forecasts for Item A were on the same day as the sales order line schedule date, that forecast would be
consumed first.
• If the forecast for Item A is for the same day in both forecasts, the forecasts are consumed in alphanumeric order by forecast name.
For example, if each forecast for Item A is for a quantity of 100 and you place sales order demand for 20, the consumption process would decrement only Forecast #1 to 80. However, if the sales order quantity is for 120, Forecast #1 is decremented from 100 to zero and Forecast #2 is decremented from 100 to 80.

Consumption Across Forecast Sets


Consumption can occur multiple times if an item appears in more than one forecast set. For example:
Forecast Set #1 contains Forecast #1 and Forecast Set #2 contains Forecast #2. The same item, Item A, belongs to both forecasts within each set.
When you create a sales order, both forecasts for Item A in Forecast Set #1 and Forecast Set #2 are consumed. This is because consumption occurs against each forecast set, and Item A exists in both forecast sets.

For example, if each forecast for Item A is quantity 100 and you place sales order demand for 20, the consumption  process would decrement each forecast in each set from 100 to 80

Note: In this example, Forecast Set #1 and Forecast Set #2 are most likely alternative scenarios —two different sets for
comparison purposes, so that consumption occurs for the same item in both sets. If you want to consume an item only once, define all forecasts for an item within a single set.

Backward and Forward Consumption Days
When you define a forecast set, you can enter backward and forward consumption days. This creates a forecast consumption “window” of time that consists of the backward and forward consumption days added to the sales order line schedule date. In other words, the consumption days define the period of time that a forecast entry covers.

Consumption days are used when an exact match between the sales order dates and the forecast dates is not found, or when a match is found and the quantity is not sufficient to cover the sales order quantity. In both of these situations, consumption first moves backwards in workdays, looking for a forecast quantity to consume. If that search is unsuccessful, consumption moves forward in workdays. If a suitable forecast entry to consume is still not found, or the sales order quantity has not been completely consumed, an overconsumption entry is added to the forecast set.

Consumption and Demand Classes
You can assign a demand class to a forecast. When you create a sales order with a demand class, consumption searches for forecasts that have the same demand class. Consumption attempts to consume these forecasts first. If it does not find matching entries, it tries to consume forecasts that do not have a demand class.

For sales orders without an associated demand class, consumption attempts to consume forecasts that match the default demand class for the organization first, and then consumes forecast entries that have no demand class defined.

Overconsumption

When consumption cannot find an appropriate forecast entry to consume, it creates, for information purposes only, a new forecast entry at the forecast set level. This entry has a zero original quantity and a negative current quantity equal to the unconsumed demand. The entry is marked with an origination of overconsumption and is not loaded into the master schedule.
Attention: Only overconsumed items are shown when you access the Forecast Set Items window through the Forecast Sets window. However, all the items within a forecast set are shown – including overconsumption – when this window is accessed in the view mode through the Inquiry menu.

Unconsumption
When you decrease the order quantity on a sales order line item, Master Scheduling/MRP and Oracle Supply Chain Planning
unconsumes (increments) the appropriate forecast entry, according to the criteria described for consumption. This process is also called deconsumption.
This process attempts to remove overconsumption entries at the forecast set level first, before searching for an appropriate forecast entry to unconsume.
Attention:
1. Return Material Authorizations (RMAs) do not trigger the unconsumption process. If you change a sales order line schedule date, Oracle Master Scheduling/MRP and Supply Chain Planning unconsumes the sales order quantity based on the old schedule date and reconsumes the sales order quantity based on the new schedule date.
2. You can create sales orders with due dates beyond the manufacturing calendar to express future demand that has uncertain due dates. Oracle Master Scheduling/MRP and Supply Chain Planning consumes the forecast on the last valid
workday in the manufacturing calendar. When the sales order schedule date is changed, it unconsumes on the last workday
and reconsumes on the sales order line schedule date.

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