<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000107" xml:lang="en">
   <Header>
      <Title>To compute the demand forecast</Title>
      <Keyword type="header" order="d1e189398">
         <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>ERP Enterprise 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="manual">Dependent Demand Forecast</GUIRef> check box in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session is selected, ERP Enterprise 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>
            <ListItem>
               <Link href="/baanerp/cp/glossary/glossary#000126" role="glossary">distribution 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>