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.
| Date | Open sales forecast | SO line demand |
|---|---|---|
| 6/01/08
(out of limit) |
200 | 0 |
| 6/10/08
(out of limit) |
200 | 0 |
| 7/29/08 | 0 | 0 |
| 7/30/08 | 0 | 0 |
| 7/31/08 | 0 | 0 |
| 8/01/08 | 0 | 1500 |
| 8/02/08 | 0 | 0 |
| 8/06/08
(out of limit) |
200 | 0 |