FORECAST CONSUMPTION

When you use the Sales Order Entry module to create a sales order for inventory parts that have open sales forecast quantities in MPS, Costpoint uses several MPS settings to determine which forecasts to consume.

Sales orders do not consume user-defined forecasts.

The following examples illustrate how the Default Consume Forecast by Period Method and Consumption Preference options on the Configure Master Production Schedule Settings screen affect the way Costpoint consumes forecasts.

Consider the following unconsumed forecasts:

No Period Limit/Consume Closest Forecast

The Default Consume Forecast by Period Method is Don't Limit, and the Consume Closest Forecast Demand to SO Line Ship-By Date option is selected.

You enter a sales order for 700 units to ship by 7/30/08.

The forecast that is closest to the sales order ship-by date (the 7/30 forecast) is consumed first and moved to the sales order demand quantity.

The 7/30 open forecast quantity of 200 is insufficient to meet the sales order demand; 500 units remain. The next 200 units are consumed from the next closest date. Because the 7/29 and 7/31 forecasts are equally close, the earlier forecast (7/29) is consumed first. Now 300 units remain.

The 7/31 forecast is now the closest. It consumes another 200 units, leaving 100 to be consumed by the next closest forecast (8/01). Because only part of that open forecast quantity is consumed, the 8/01 forecast is left with an open sales forecast quantity of 100.

No Period Limit/Consume Earliest Forecast

The Default Consume Forecast by Period Method is Don't Limit, and the Consume Earliest Forecast Demand option is selected.

You enter a sales order for 700 units to ship by 7/30/08.

The forecast that is earliest (the 6/01 forecast) is consumed first and moved to the sales order demand quantity.

The 6/01 open forecast quantity of 200 is insufficient to meet the sales order demand; 500 units remain. The next 200 units are consumed from the earliest remaining date (6/10), followed by the next earliest date (7/29), leaving 100 units to be consumed by the next earliest (7/30) forecast. Because only part of the open forecast quantity is consumed for 7/30, the 7/30 forecast is left with an open sales forecast quantity of 100.

Limit by Month/Consume Closest Forecast

The Default Consume Forecast by Period Method is Limit by Ship-By Month, and the Consume Closest Forecast Demand to SO Line Ship-By Date option is selected.

You enter a sales order for 300 units to ship by 7/30/08.

The forecast that is closest to the sales order ship-by date within the same calendar month (the 7/30 forecast) is consumed first and moved to the sales order demand quantity.

The 7/30 open forecast quantity of 200 is insufficient to meet the sales order demand; 100 units remain. These units are consumed from the next closest date.

Because the 7/29 and 7/31 forecasts are equally close, the earlier forecast (7/29) is consumed. Only part of that open forecast quantity is consumed, and the 7/29 forecast is left with an open sales forecast quantity of 100.

Limit by Month/Consume Earliest Forecast

The Default Consume Forecast by Period Method is Limit by Ship-By Month, and the Consume Earliest Forecast Demand option is selected.

You enter a sales order for 1000 units to ship by 7/30/08.

The forecast that is earliest within the same calendar month as the ship-by date (the 7/29 forecast) is consumed first and moved to the sales order demand quantity.

The 7/29 open forecast quantity of 200 is insufficient to meet the sales order demand; 800 units remain. The next 200 units are consumed from the earliest remaining date (7/30), followed by another 200 units on the next earliest date (7/31), leaving 400 units.

The sales order line total demand quantity was not met, but further forecasts cannot be consumed because there are no more open forecast quantities within the same calendar month as ship-by date.

Limit by Week/Consume Closest Forecast

The Default Consume Forecast by Period Method is Limit by Ship-By Date Week, and the Consume Closest Forecast Demand to SO Line Ship-By Date option is selected.

You enter a sales order for 1500 units to ship by 8/01/08. The production week for that ship-by date is 7/27/2008 (Sunday) to 8/02/2008 (Saturday).

The forecast that is closest to the sales order ship-by date within the same production week (the 8/1 forecast) is consumed first and moved to the sales order demand quantity.

The 8/1 open forecast quantity of 200 is insufficient to meet the sales order demand of 1500; 1300 units remain. The next 200 units are consumed from the next closest date within the same production week. Because the 7/31 and 8/2 forecasts are equally close, the earlier forecast (7/31) is consumed first. Now 1100 units remain.

The 8/02 forecast is now the closest within the same production week. It consumes another 200 units. Next are the 7/30 and 7/29 forecasts, respectively, leaving 500 units.

The sales order line total demand quantity was not met, but further forecasts cannot be consumed because there are no more open forecast quantities within the same production week as the ship-by date.

Limit by Week/Consume Earliest Forecast

The Default Consume Forecast by Period Method is Limit by Ship-By Date Week, and the Consume Earliest Forecast Demand option is selected.

You enter a sales order for 700 units to ship by 7/30/08. The production week for that ship-by date is 7/27/2008 (Sunday) to 8/02/2008 (Saturday).

The forecast that is earliest within the same production week (the 7/29 forecast) is consumed first and moved to the sales order demand quantity.

The 7/29 open forecast quantity of 200 is insufficient to meet the sales order demand of 700; 500 units remain. The next 200 units are consumed from the next earliest date within the same production week (7/30), followed by 7/31 and 8/1. Because only part of the open forecast quantity is consumed for 8/1, the 8/1 forecast is left with an open sales forecast quantity of 100.