Sales Orders Consume Forecast

This calculation process applies to Sales Orders Consumes Forecast demand generation:

1. Determine the demand time fence:

   Calculate total gross requirements, by inventory item by date, as the quantity remaining greater than zero of all sales order line items with a delivery date less than or equal to, the demand time fence.

2. Determine the end date.
3. For each forecast period after the demand time fence and up to and including the end date:
   • Total, by inventory item by date, the quantity remaining greater than zero of all sales order line items with a delivery date greater than the demand time fence and less than or equal to the forecast period end date.
   • Total, by inventory item by date, the forecast quantity.
   • If the total forecast quantity for the period is greater than the total of all sales order line items for the period, create a gross requirement for the forecast quantity less the sales order line item quantity with a required by date of the forecast period start date.

Example 1

The forecast (500) is greater than the sales orders, so a gross requirement is created for the difference - 500 - 390 = 110 - and is required the day after the demand time fence. In this example this is the forecast start date of 01/01/06.

Example 2

In this example, the sales orders total for the period 01/01/17 to 31/01/18 (690) is greater than the forecast (500) so a gross requirement from the forecast is not created.

• Prorate Forecast