Forecast Explosion

Forecast explosion is the process that explodes forecasts for planning items, models, and option classes to selected components on your planning, model, and option class bills. Forecast explosion calculates exploded forecast quantities by extending parent forecast quantities using the component usages and planning percents defined on your planning, model, and option class bills.

You can associate alternate bills of material to multiple forecasts for the same item. This lets you explode the same forecast using different components, usages, and planning percents. You explode forecasts by choosing the Explode option when loading a forecast into another forecast or a master schedule.


Exploding Forecasts from Using Assemblies
The following table illustrates when forecast explosion explodes forecast from a parent item to its components. 'Always' means 'Always explode forecasts from this item', and 'Never' means 'Never explode forecasts from this item.'

  • Notice Forecast explosion doesnt happen neither for standard items nor for ATO standard items.
  • You can create a forecast for Model/Option class and the coyp/merge the same forecast from the same source(i.e both destination and source forecasts are same and that forecast contains the forecast information of model/option class) with the explosion Yes. The system would do the explosion and put the child item forecast details in the same forecast.

Forecast Consumption for Models
Oracle Master Scheduling/MRP and Supply Chain Planning automatically consumes forecasts for product families, configurations, models, option classes, and options when you place sales order demand for configurations. By default, forecast consumption consumes forecasts by item. If you want to consume your forecasts by distribution channel, customer type, or order type, use demand classes to control forecast consumption. You can also choose to consume your forecasts by one of the following forecast consumption levels:
• item
• customer
• customer bill-to address
• customer ship-to address

Forecast consumption takes place both before and after the AutoCreate Configuration process creates a configuration item, bill, and routing for a configuration. Oracle Master Scheduling/MRP and Supply Chain Planning ensures that forecast consumption is consistent before and after the creation of the configuration item.

Forecast Consumption: Before AutoCreate Configuration
When your customers order configurations, Oracle Order Management places sales order demand for all ordered models, option classes, and options.
Note: Under normal circumstances, no sales order demand is placed for mandatory components. You can also generate derived sales order demand for selected mandatory components, since forecast consumption generates derived sales order demand for all items where you have set Forecast Control to Consume or Consume and Derive. This lets you define and maintain forecasts for key mandatory components as well as models, option classes, and options.

Before you run the AutoCreate Configuration process, forecast consumption uses actual sales order demand for models, option classes, options, and derived sales order demand for selected mandatory components, to consume your forecasts.

Forecast Consumption: After AutoCreate Configuration
The AutoCreate Configuration process replaces sales order demand for ordered models,option classes, and options with sales order demand for the newly created configuration item. This prompts forecast consumption to unconsume forecasts for the models, option classes, options, and selected mandatory components, and consume forecasts for the new configuration item and its components.

When creating the configuration item, the AutoCreate Configuration process also creates a single level bill of material for the configuration item. The single level bill includes all ordered options, all mandatory components of all ordered models and options classes, and each ordered model and option class. The models and option classes appear on the configuration bill as phantoms, and are only there to consume forecasts and relieve master schedules. They are not used by the planning process or Oracle Work in Process since all mandatory components from the model and option class bills are also included directly on the single level bill.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules