You can estimate future demand for items using any combination of historical, statistical, and intuitive forecasting techniques. You can create multiple forecasts and group complimenting forecasts into forecast sets.
- Forecasts are done in inventory organization level.
- Forecasts are consumed each time your customers place sales order demand for a forecasted product.
- You can load forecasts, together with sales orders, into master demand and production schedules, and use the master schedules to drive material requirements planning.
Before you define a forecast, you first define a set. Forecast sets:
• Group complimenting forecasts that sum together to a meaningful whole
• Group forecasts that represent different scenarios
Forecast Set Examples
Forecasts by Region
You have three forecasts named FCA, FCB, and FCC within a forecast set. Salesperson A, responsible for the Eastern region, maintains FCA. Salesperson B maintains FCB for the Midwest. Salesperson C maintains FCC for the Western region. In this situation, FCA, FCB, and FCC each represent a part of the whole forecast. Together, their sum represents the total forecast.
You have three forecast sets named SETA, SETB, and SETC. These forecast sets represent different scenarios. SETA is the forecast for the bestcase scenario year of sales, while SETB is the planned scenario year of sales. SETC shows the worst-case scenario year of sales. You may want to maintain all three forecast sets simultaneously, so you can compare and contrast the effect each has on your material plan.
Define a forecast set
1. Enter a unique name.
2. Select a bucket type to group forecast entries by days, weeks, or accounting periods.
3. Select the level that determines how forecasts in the set are defined and consumed.
In addition to designating the minimum level of detail for which the forecast is defined, the forecast level also serves as a consumption level. You can define the forecast level with or without the demand class that also controls the consumption of forecasts. You can define the following consumption levels for a forecast set:
- Ship - To: Item, customer, and shipping identifier
- Bill - To: Item, customer, and billing identifier
- Customer: Item and customer ; When you define a forecast for the forecast set with level at customer, you need to mention the customer Name in the forecast and consumption 'll happen only when a SO is created for the customer item cumbination.
- Item: This is the only option available if you are not using Oracle Order Management or Oracle Receivables.
While attempting to consume a forecast, the consumption process looks for a forecast containing an item that corresponds to the sales order information. When it finds an entry, it checks the forecast using the criteria you defined for the forecast level. For example, if you define the forecast level to be ship to, the forecast consumption process searches the forecasts for the customer/ship–to address associated with the sales order.
4. Select consumption options.
If you turn consumption on, sales orders you create consume forecast entries in this set.
The outlier update is the maximum percentage of a forecast entry that a single sales order can consume.
Forward and backward days describe the number of work dates from the sales order schedule date that forecast consumption looks backward or forward for a forecast entry to consume. Non - workdays are not counted in these calculations.
A forecast shows predicted future demand for items over time.
You can assign any number of items to a forecast, and use the same item in multiple forecasts. For each item you enter the days, weeks, or periods and the quantities that you expect to ship.
A forecast entry with a forecast end date specifies the same quantity scheduled for each day, week, or period until the forecast end date. A forecast entry without a forecast end date is valid only for the date and time bucket specified.
Defining Forecast Details
You can also review and update forecast information in the Items Forecast Entries window. This window displays the same information as the Forecast Entries window – with the difference that it contains a listing of the all the items in a forecast set. From here you can access bucketed and consumption details.
If you create a forecast after entering the sales order then click on the consume button on forecast set to run the concurrent program Consume Forecast Set which 'll check the forecast and existing sales order dates and initiate the consumption process.
The consumption information can be seen in consumptions form.