Demand forecasting

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Hi all,

This question is regards to the setup of demand forecasting:

I have a case, where the company manufactures tetra packs for packing juices. Manufacturing depends on the forecast and sales orders for that day. The minimum sales order for a day is 500 units. Forecast is based on daily demand.

I would like know:

- How do i setup a daily forecast for the item ?

Kindly let me know on how to setup the forecast for the item.

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Fredrik Sætre 12,644 on at

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Is the forecast variable or is it static? Does it fluctuate by season or any other variables making it fluctuate?

You can create a yearly demand and then divide it into daily forecast and then later go and adjust these.

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Guy Terry 28,924 Moderator on at

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Hi Nitish,

Is your intention to use this 'new' functionality (that came along in R3)?:

technet.microsoft.com/.../dn767954.aspx

Or by entering the Demand forecast directly?:

technet.microsoft.com/.../aa499758.aspx

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Hi Fredrik,

Answer to you question, the demand is not seasonal or it does not fluctuate. For instance there are 3 products which has sales orders per day. Along with that there is a daily demand for each of them of minimum 500 eaches. How do it present this demand of minimum 500 of each items in Standard AX?

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Community Member on at

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Hi Terry,

In my case, there are 3 items which are manufactured and sold each day along with a daily demand of minimum 500 pieces of each items. How can i present using a standard AX functionality?

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Fredrik Sætre 12,644 on at

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Do you want your actual sales to be added or surpress your demand.

E.G. Demand is 500 pcs and there are sales for 550. Should the production qty be 550?

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Fredrik Sætre 12,644 on at

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I would assume this is an easy task. There are some fancy stuff with allocation keys that you could use if you wanted to use a grouping principle and then divide your coverage by product.

This is what you do:

Requisites: I would assume you already have a master plan set up.

1. Go to your master plan.

1.1. Select and Add an "Inventory forecast model". You can do this directly by right clicking and selecting "Details" in the form.

1.1.1 Add a tick on the Item under "Automatic forecast reduction" if you sell through projects...

1.2. Tick the "Include Demand forecast"

1.3. In Reduction principle select "Transactions - Dynamics period"

2. Go to your Released products and select Plan > Forecast > Demand forecast.

2.1. Click New and select a model

2.2. Input the start date when you want to start your forecasts. Defaults to "todays date".

2.3. Add a sales quantity of 500

2.4. Now create demand lines by using "Allocation" in the center of the form.

2.4.1. Method: Period

2.4.2. Per: 1

2.4.3. Unit: Days

2.4.4. End: Input the end day you want to have your forecasting stop. Don't create until the end of time, but maybe a couple of months or a year into the future.

2.4.5. Click Create lines

Now try running your master plan and take a look at the demands for the item with demand forecast. :)

Happy DAXing!

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Community Member on at

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Dynamics AX has always allowed you to enter in Demand Forecasts against products and customers, but with the R3 release of 2012, a new feature was added that allows your to have the system create your statistical forecasts based on the history in the system and then allow you to adjust the forecasts through Excel before automatically uploading them back into the demand forecast tables. Although there still may be cases where you want to use a companion product to create more elaborate forecasts, for most people, this is more than enough, and it’s included in the product at no extra cost.

You don’t have to resort to mysticism and guess work anymore when it comes to forecasting.

There are a few things that you will want to make sure that you have configured. First, we need to make sure that our analysis services user that is going to be running the forecast generation has access to the SQL database. To do this open up SQL Enterprise Manager, expand the Databases group, find your Dynamics AX database and then open up the Users folder within the Security group.

See below URL for a descriptive walk through from a to z.

dynamicsaxtipoftheday.com/.../configuring-demand-forecasting

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Community Member on at

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Hi Fredrik and Jason

Thanks a lot. It did work well.

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