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<ManualTopic ID="/baanerp/cp/onlinemanual/000107" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To compute the demand forecast</Title>
		<Keyword><Level1>Demand forecast</Level1>
			<Level2>computing</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Use the <GUIRef href="/baanerp/cp/dsp/cpdsp1210m000" role="session">Generate Demand and Inventory Plan (cpdsp1210m000)</GUIRef> session to generate the <Link href="/baanerp/cp/glossary/glossary#000015" role="glossary">demand forecast</Link> based on historical demand data. The parameters of the <GUIRef href="/baanerp/cp/dsp/cpdsp1110m000" role="session">Plan Items - Forecast Settings (cpdsp1110m000)</GUIRef> session control the calculation method.</Paragraph>
		<GeneralSection><SectionTitle>Historical demand data</SectionTitle>
			<Paragraph>SSA ERP forecasts the future demand on the basis of historical demand data from the <Link href="/baanerp/cp/glossary/glossary#000019" role="glossary">item master plan</Link> or the <Link href="/baanerp/cp/glossary/glossary#000020" role="glossary">channel master plan</Link>. This historical demand data consists of the <Link href="/baanerp/cp/glossary/glossary#000113" role="glossary">customer deliveries</Link> between the start date of the scenario and the current plan period.</Paragraph>
			<List><ListIntro>If the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.depd" role="formfield">Dependent Demand Forecast</GUIRef> check box in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session is selected, SSA ERP bases the demand forecast on the sum of:</ListIntro>
				<ListItem>Customer deliveries</ListItem>
				<ListItem><Link href="/baanerp/cp/glossary/glossary#000125" role="glossary">Internal deliveries</Link>
				</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Structure of the demand forecast</SectionTitle>
			<List><ListIntro>The demand forecast has three parts:</ListIntro>
				<ListItem><Emphasis>Trend influence</Emphasis>: describes how fast the demand increases or decreases.</ListItem>
			</List>
			<List><ListItem><Emphasis>Seasonal influence</Emphasis>: describes any recurring pattern in the demand. For example, the demand for umbrellas is higher in rainy seasons.</ListItem>
			</List>
			<List><ListItem><Emphasis>General demand level or average demand</Emphasis>: the demand without trend or seasonal influence.</ListItem>
			</List>
		</GeneralSection>
		<GeneralSection><SectionTitle>Demand forecasting procedure</SectionTitle>
			<List><ListIntro>First, the trend and seasonal influences are determined. Then, the future demand is forecast by means of one of the following methods:</ListIntro>
				<ListItem>Moving average</ListItem>
				<ListItem><Link href="/baanerp/ti/glossary/glossary#ExponeSmooth.ti" role="glossary">Exponential smoothing</Link>
				</ListItem>
				<ListItem><Link href="/baanerp/cp/onlinemanual/000111" role="manual">Forecast method: polynomial regression</Link>
				</ListItem>
				<ListItem><Link href="/baanerp/cp/onlinemanual/000112" role="manual">Forecast method: time-series analysis</Link>
				</ListItem>
			</List>
			<Paragraph>The details of the calculation are described in the <Link href="/baanerp/cp/onlinemanual/000079" role="manual">Algorithm for demand forecasting</Link> topic.</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000077" role="manual">Demand forecasting in Enterprise Planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000079" role="manual">Algorithm for demand forecasting</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
