| # Calculate Demand Forecast (whina2202m000) Use this session to calculate the demand forecast by item for a range of future periods. LN uses the demand forecast when calculating the safety stock for each period:

    S (n) = K * 1.25 * MAD (n) Sqrt ((Oint * 5/7 + Oltm + Sftm) / Period Length)Ssafety stockKsafety factor determined by LN on basis of service levelMADmean absolute deviationOintorder intervalOltmorder lead timeSftmsafety timePeriod Length(52 * 5)/number of periods
And when calculating the reorder point:

    ROPreorder pointDem.forec.demand forecastOltmorder lead timeOintorder intervalSftmsafety timeSsafety stockPeriod Length(52 * 5)/number of periods
The number of periods for calculating the safety stock and the reorder point must be determined based upon period type and the number of periods as defined in the Item - Ordering (tcibd2100s000) session and the Warehouse - Item (whwmd2110s000) session. Updates The Safety Stock field and the Reorder Point field in the Item - Ordering (tcibd2100s000) session will be updated for the specified items with the values calculated for the period in farthest future, if the Inventory/Order Data check box in that session and the Item Data check box are selected. If the Item Data by Warehouse check box is selected, the following fields in the Warehouse - Item (whwmd2110s000) session are updated: Expected Annual Issue Safety Stock Reorder Point For all items specified, the Expected Annual Issue field in the Item - Warehousing (whwmd4100s000) session will be updated. The demand forecast by period is updated for the specified items in the following sessions: Item - Issue by Period (whinr1120s000) Warehouse - Item - Issue by Period (whinr1130s000) Note The From and To fields of the Year/Period field must fall in the year entered in the corresponding year in the Year/Period of Usage From field. To preview the calculation results in a report before the demand forecasts are actually updated, select Simulate. If the Item Issue History field and Item Issue by Warehouse History field of the Inventory Reporting Parameters (whinr0100s000) session are cleared, the Calculate Demand Forecast (whina2202m000) session is aborted. Related topics To calculate demand forecast for each period Selection Range Year/Period of Usage From The year from which LN starts analyzing the demand forecast. Year/Period of Usage From The period of the year, that is specified in the Year/Period of Usage From field, from which LN starts analyzing the demand forecast. Update Simulate/Update To preview the calculation results in a printed report before the demand forecasts are actually updated, select Simulate. Default value Simulate Item Data If this check box is selected, LN updates the general order data in the Item - Ordering (tcibd2100s000) session. Item Data by Warehouse If this check box is selected, LN updates the order data in the Warehouse - Item (whwmd2110s000) session. For Calculation Use For Calculation Use The method used by LN for the demand forecast calculation. Allowed values Actual and Demand Quantity Related topics Demand Direct Delivery Returned Quantity Lost Sales Demand Direct Delivery The Demand Direct Delivery can be taken into account for the demand forecast. The value will be added up to either Actual Issue by Period or Qualified Demand Qty. Returned Quantity The Returned Quantity can be taken into account for the demand forecast. If this check box is selected, LN automatically subtracts the Returned Quantity from the Qualified Demand Quantity field of the Item - Issue by Period (whinr1520m000) session and the Warehouse - Item - Issue by Period (whinr1530m000) session. Note The Returned Quantity check box is disabled if the forecast calculation is based on Actual Issue by Period. The Returned Quantity check box is enabled if the forecast calculation is based on qualified demand quantity. Lost Sales The Lost Sales can be taken into account for the demand forecast. The value will be subtracted from qualified demand quantity. Lost Sales is only relevant if the demand forecast calculation is based on Qualified Demand Quantity, and the Qualified Demand Quantity is populated by the Actual Demand. The Actual Demand represents the total customer demand in a certain period, irrespective if the demand is shipped to the customer or cancelled. For a more realistic picture, the canceled orders, which are Lost Sales, can optionally be subtracted from the Actual Demand. Note The Lost Sales check box is cleared and disabled if the forecast calculation is based on Actual Issue by Period. The Lost Sales check box is enabled in case the forecast calculation is based on qualified demand quantity. Number of Future Periods The number of future periods for which LN calculates the demand forecast by item. For more information, refer to To calculate demand forecast for each period Print Forecast Calculation Print Forecast Calculation If this check box is selected, a forecast calculation is printed. Year/Period The year from which LN starts generating the report of the forecast demand. Year/Period The period of the year, that is specified in the Year/Period field, from which LN starts generating the report of the forecast demand. Year/Period The last year for which LN generates the report of the forecast demand. Year/Period The last period of the year, that is specified in the Year/Period field, for which LN generates the report of the forecast demand. Detailed Report If this check box is selected, LN prints the detailed demand forecast data. If this check box is cleared, LN prints the summarized demand forecast data, |