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<ManualTopic ID="/baanerp/cp/onlinemanual/000475" xml:lang="en">
   <Header>
      <Title>Forecast frozen zones</Title>
      <Keyword type="header" order="d1e168575">
         <Level1>Frozen zones</Level1>
      </Keyword>
      <Keyword type="header" order="d1e168578">
         <Level1>VMI</Level1>
         <Level2>frozen zones</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>This topic describes how to prevent undesirable changes in the
		forecast for the short-term future.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>Prevention of short-term changes in the
		forecast</SectionTitle>
      <Paragraph>In a <Link href="/baanerp/wh/glossary/glossary#000469" role="glossary">vendor managed inventory (VMI)</Link> situation, if a supplier
		plans the supply for the customer, the supplier relies on the forecast received
		from the customer. If the customer changes the forecast for the near future,
		the supplier can become unable to adjust the plan in time.</Paragraph>
      <List>
         <ListIntro>The following types of problem can occur:</ListIntro>
         <ListItem>If the customer sends a new <Link href="/baanerp/cp/glossary/glossary#000457" role="glossary">revision</Link> of the forecast, in which the forecast is
		  suddenly increased, it is possible that the supplier cannot adapt the
		  production level in time, because the supplier's lead times are too long.</ListItem>
         <ListItem>If the customer suddenly decreases the forecast, it is possible
		  that the supplier is left with a high inventory of unused components and
		  subassemblies.</ListItem>
      </List>
      <Paragraph>To prevent these problems, customer and supplier can agree on a
		time period in which the customer is not permitted to increase or decrease the
		forecast; you define this time period in a <Link href="/baanerp/tc/glossary/glossary#000500" role="glossary">terms and conditions agreement</Link>.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>LN does not strictly enforce these limits. You can manually override the
		  restrictions.</Paragraph>
      </Note>
      <GeneralSection>
         <SectionTitle>To set up frozen zones</SectionTitle>
         <Paragraph>The frozen zone is defined in the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frzm" role="manual">Frozen Zone -</GUIRef> field and the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frzp" role="manual">Frozen Zone +</GUIRef> field in the <GUIRef href="/baanerp/tc/trm/tctrm1135m000" role="session">Planning Terms and Conditions (tctrm1135m000)</GUIRef> session. The supplier and customer must
		  both define these fields.</Paragraph>
         <Paragraph>The <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frzm" role="manual">Frozen Zone -</GUIRef> field restricts the customer's freedom
		  to decrease a forecast.</Paragraph>
         <Paragraph>The <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frzp" role="manual">Frozen Zone +</GUIRef> field restricts the customer's freedom
		  to increase a forecast.</Paragraph>
         <Paragraph>Both parameters are defined as a number of calendar days from
		  the current date.</Paragraph>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <Paragraph>The supplier wants to be informed about decreasing demand at
			 least 14 days in advance. The supplier wants to be informed about increasing
			 demand at least 21 calendar days in advance.</Paragraph>
            <Paragraph>To achieve this restriction, the supplier and the customer
			 must set the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frzm" role="manual">Frozen Zone -</GUIRef> field to 14, and the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frzp" role="manual">Frozen Zone +</GUIRef> field to 21.</Paragraph>
            <Paragraph>For detailed calculation examples, refer to <Link href="/baanerp/cp/onlinemanual/000479" role="manual">Forecast frozen zone calculation</Link>.</Paragraph>
         </ExampleSection>
      </GeneralSection>
      <GeneralSection ID="useRestrictions">
         <SectionTitle>To use the frozen zone restrictions</SectionTitle>
         <GeneralSection>
            <SectionTitle>Customer side</SectionTitle>
            <Paragraph>When you approve the forecast, LN checks the frozen
			 zone by comparing the forecast to the previously sent <Link href="/baanerp/cp/glossary/glossary#000457" role="glossary">revision</Link>.If the forecast has been increased in the <Link href="/baanerp/td/glossary/glossary#000027" role="glossary">frozen zone+</Link>, or decreased in the <Link href="/baanerp/td/glossary/glossary#000028" role="glossary">frozen zone-</Link>, the system asks whether you want to approve
			 the revision.</Paragraph>
            <Paragraph>To determine what LN must do if a forecast was changed in the frozen
			 zone, use the <GUIRef href="/baanerp/cp/vmi/cpvmi0202m000#e.acc.changes.fz" role="manual">Approve Forecast changes in Frozen Zone</GUIRef> check box in
			 the <GUIRef href="/baanerp/cp/vmi/cpvmi0202m000" role="session">Approve Forecast to Supplier (cpvmi0202m000)</GUIRef> session.</Paragraph>
            <Paragraph>If you approve a forecast that violates the frozen-zone
			 restrictions, the supplier might refuse to approve your forecast.</Paragraph>
         </GeneralSection>
         <GeneralSection>
            <SectionTitle>Supplier side</SectionTitle>
            <Paragraph>When you accept the forecast received from your customer, LN checks the frozen
			 zone by comparing the received forecast to the previously received <Link href="/baanerp/cp/glossary/glossary#000457" role="glossary">revision</Link>. If the forecast has been increased in the <Link href="/baanerp/td/glossary/glossary#000027" role="glossary">frozen zone+</Link>, or decreased in the <Link href="/baanerp/td/glossary/glossary#000028" role="glossary">frozen zone-</Link>, the system asks whether you want to approve
			 the revision.</Paragraph>
            <Note>
               <SectionTitle>Note</SectionTitle>
               <Paragraph>To determine the last day of the frozen zone, LN uses the date on
				which you received the forecast as a reference.</Paragraph>
            </Note>
            <Paragraph>To determine what LN must do if a forecast was changed in the frozen
			 zone, use the <GUIRef href="/baanerp/cp/vmi/cpvmi0206m000#e.acc.beyond.fz" role="manual">Accept Forecast changes in Frozen Zone</GUIRef> check box in
			 the <GUIRef href="/baanerp/cp/vmi/cpvmi0206m000" role="session">Accept Forecast from Customer (cpvmi0206m000)</GUIRef> session.</Paragraph>
         </GeneralSection>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000470" role="manual">Supply planning by supplier</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000479" role="manual">Forecast frozen zone calculation</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>