| Seasonal pattern for safety stock and demand |  |
| The seasonal pattern indicates the (expected) fluctuations in sales. With seasonal pattern for safety stock you can prevent capacity problems during sales peaks and reduce the risk of obsolete inventory. The safety stock is adjusted to the seasonal factor for the current period. The adjustment in inventory is then added to the reorder point. Capacity inventory can be built by using systematic increasing the inventory. The seasonal pattern for demand is used to forecast the demand for the item in the next few periods. When you use the forecast function, you must run the Calculate Demand Forecast (whina2202m000) session on the first day of a new period. Based on the forecast method, this session calculates the demand forecast for each item for the next period, in which the seasonal pattern for demand is read. The result is that this pattern is incorporated in the item's reorder point. Depending on the field Update inventory/order data the fields safety stock and reorder point are filled with new values. |