Forecast Consumption will reduce (consume) forecast demand as Sales Orders are entered in to avoid duplicating demand.
Forecast Consumption is triggered as part of MRP, if enabled. Running MRP will cause forecasts to be consumed before the main MRP logic is executed.
Forecast Consumption strategies:
Search for Forecasts with the same or earlier period. If none are found, no consumption occurs. If one is found and its quantity is larger than the sales order quantity, consume sales order quantity and stop. If forecast quantity is smaller than sales order quantity, consume the full forecast and search for another forecast to consume. Repeat until either the sales order quantity is fully consumed or no eligible forecasts are found within the consumption window.
Same as Backward, except forecasts with periods equal to or greater than the sales order period are considered.
Starts as Backward strategy and switches to Forward when no more backward forecasts are available and sales order is not fully consumed yet.
- Given a Sales Order, find the Forecasts before and after the Sales Order.
- Calculate the ratio based on how close the Sales Order is to each. For example, if two forecasts are 100 days apart and the Sales Order is 10 day away from one and 90 days from the other, the ratios would be 90 to 10.
- Consume (reduce) the forecast quantities by the ratio amounts.
- If the Forecast qty is less than the amount being consumed and it goes down to zero, Repeat the process with the next Forecast, calculating the ratios and apply the quantities.