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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Demand Forecast type -...
Small and medium business | Business Central, N...
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Demand Forecast type - Sales Item vs Component

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Posted on by ew98000 225

Need thorough explanation of how demand planning forecast types; sales item vs component differ in the planning worksheet calculations. What is the designed functionality of planning worksheet when calculating sales item and component type forecasts?

Running a production forecast for a parent finished good manufactured item. There is qty entered into the component type forecast but planning worksheet (MPS & MRP = true) is not suggesting any production orders. As a test, I then added qty to the sales item type forecast which did result in Planning worksheet making the expected suggested production order.

So is this how it works? Is sales item type forecast required for suggesting production orders of parent items and component type for suggesting orders based on existing production orders or is that too simplified? I'm looking to understand the nuances of each type and when to use which.

Thanks.

  • Guy McKenzie Profile Picture
    Guy McKenzie 1,330 on at
    RE: Demand Forecast type - Sales Item vs Component

    This is not the most intuitive area but you are along the right lines.

    A sales forecast is utilised by MPS as a demand for finished goods leaving the business.

    A component forecast is useful for sub-assemblies and will be considered by MRP planning.

    If the same item has both a sales and component forecast, the forecasts will be netted off by the specific demand signals. Sales net off the sales forecast and output nets off the component forecast.

    Unfortunately, I can’t provide all the details off the top of my head as it rarely gets used in anger by many businesses but hopefully this scenario will help define the purpose.

    Imagine a component in an item that has erratic sales demand with peaks that exceed the manufacturing capacity of the component. The sales forecast fluctuates to reflect this but the production manager knows he must continually output the maximum capacity to cope with sales peaks.

    The component forecast is entered at a level that will smooth the peaks.

  • Suggested answer
    MahGah Profile Picture
    MahGah 15,445 on at
    RE: Demand Forecast type - Sales Item vs Component

    Hi

    I am in search for the same question. I have found the following old documents and reviewing them now. If I found an answer I will share here. If you read them and find an answer also please share here.

    is.muni.cz/.../8361A_02.pdf

    www.dynms.com/.../microsoft-dynamics-nav-2013-supply-planning-white-paper-1.pdf

  • ew98000 Profile Picture
    ew98000 225 on at
    RE: Demand Forecast type - Sales Item vs Component

    No takers? :(

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