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Supply chain | Supply Chain Management, Commerce
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Managing forecast reduction

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Posted on by 41

We have a set up where we have a weekly forecast with a redutcion key of 4 weekly buckets. And up to recently this has been working ok for us. However we have entered a busier period and the disaptching units have fallen behind for sales orders. 

For instance we have a item that is forecasted as 600 untis per week. We have 1200 units of sales order for date prior to today. and 50 for the rest of the week from today. The reduction key is only deducting the 50 and the 1200 demand is ignored as it is in the apst and outside the start date of the reduction key. 

I ahve tested setting the reduction key to have a effective date of the start of the year and rolling forward 2 months. I ahve about 2 weeks worth of sales orders back logged but with the effective date of 01/01./23 through to 30/05/23. This is resulting in wipeing the fromecast for nearly the whole of the period and that is 1000s of units over what should ahve been deducted. 

How do I set up a forecast deduction to offset sales order due in the past?

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  • Hanna17 Profile Picture
    172 on at

    Hi zsazsa!

    Sales order due in the past could be deducted if it belongs to the same Reduction key period as next Demand forecast line for this item. For example, if I have Reduction key period from Apr 15 to Apr 30, Sales order with requirement date Apr 17 (in the past) and next Demand forecast for Apr 25 (in the future), then deduction works.

    Regards,

    Hanna

  • zsazsa Profile Picture
    41 on at

    Hi Hanna

    Can you pleae talk me through the set up on that? If I do not set the effective date the earliest start date is today. But If I use a effecive date the redusction is to much and not accurate?

    Geof

  • Hanna17 Profile Picture
    172 on at

    Hi Geof!

    You can use Effective date, but pay attention what dates you have in "From date" and "To date" in Reduction key period. For planned item you can open Net requirement (Released products / tab Plan / Net requirements / choose needed plan), and see the sequence of dates of requirements. There you can check dates of Sales order requirements and Demand forecast requirements, and compare those dates with dates in Reduction key period. Reduction calculation works for those lines that have dates within From date and To date from Reduction key.

    Regards,

    Hanna

  • zsazsa Profile Picture
    41 on at

    I have set up a reduction key with a effective date of 01/01/23 and a period of 365. Set that on the coverage group and set for orders only. I have 686 sales order before today and a 13.1k forecast after current reduction so expecting the new figure after MP runs to be about 12.5k

    But when I rerun master planning the total forecast remaining is 7.3k so the reduction key has reduced a extra 5k of forecast. And this is what I don't understand how to fix.

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