Your first question may be “What is Forecast Consumption?” And I’d say, “It’s a tool that’s been around for a while but gets little airplay with all the other cool features ASCP offers.” Properly configured and managed, it can help Sales and Operations work together in a manufacturing organization. Simply put, Forecast Consumption helps keep your Demand drivers “real,” giving you a better chance of shipping on time. Plus, you can export data from Oracle and measure Item Forecast Accuracy based on user-defined formulas. Read on to learn how to capitalize on the power of Forecast Consumption functionality. Posted on November 6, 2014 by Stephen Bernard In a perfect world, we would use Forecast Consumption functionality to reduce the current quantity of a forecast entry when we created a sales order due on the same day. This would prevent the sales order and forecast demand from “double driving” the Planning engine for the same requirement. Forecast Consumption has been around since Oracle Planning (MRP). So, when we mention the “Planning Engine,” it could be MRP, SCP (unconstrained multi-org), or ASCP. Many companies don’t forecast for a variety of reasons. So, they might not have even been aware of Forecast Consumption. As time marches on, some of these companies decide to start forecasting and ponder, “Where do we start?” First, businesses should consider these frequently asked questions: What parts do we want to forecast? Why? How far in the future do we want to forecast? Should we have optimistic, neutral, and/or pessimistic forecasts? How would we manage multiple forecasts? How do we reach consensus between Operations and Sales? (Ex: when the operations folks are a wee bit wary of forecasts created by the sales team). How do we control Forecast Consumption so that forecasts and sales orders don’t double drive demand from the same requirement? Forecast Consumption’s basic setup is simple and flexible: Set profile: MRP: Consume Forecast to “Yes” site level. For the parts you want to forecast at the org level, set the item attribute “Forecast Control” to “Consume” or “Consume and Derive.” o “Consume” is used when you are forecasting that item directly. o “Consume and Derive” allows you to forecast the part directly or have the demand “derived” from a Planning Bill of Material explosion.
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Your first question may be “What is Forecast Consumption?” And I’d say, “It’s a tool that’s been around for a while
but gets little airplay with all the other cool features ASCP offers.” Properly configured and managed, it can help
Sales and Operations work together in a manufacturing organization. Simply put, Forecast Consumption helps keep
your Demand drivers “real,” giving you a better chance of shipping on time. Plus, you can export data from Oracle
and measure Item Forecast Accuracy based on user-defined formulas. Read on to learn how to capitalize on the
power of Forecast Consumption functionality.
Posted on November 6, 2014 by Stephen Bernard
In a perfect world, we would use Forecast Consumption functionality to reduce the current quantity of a forecast entry
when we created a sales order due on the same day. This would prevent the sales order and forecast demand from
“double driving” the Planning engine for the same requirement. Forecast Consumption has been around since Oracle
Planning (MRP). So, when we mention the “Planning Engine,” it could be MRP, SCP (unconstrained multi-org), or
ASCP.
Many companies don’t forecast for a variety of reasons. So, they might not have even been aware of Forecast
Consumption. As time marches on, some of these companies decide to start forecasting and ponder, “Where do we
start?”
First, businesses should consider these frequently asked questions:
What parts do we want to forecast? Why?
How far in the future do we want to forecast?
Should we have optimistic, neutral, and/or pessimistic forecasts?
How would we manage multiple forecasts?
How do we reach consensus between Operations and Sales? (Ex: when the operations folks are a wee bit wary
of forecasts created by the sales team).
How do we control Forecast Consumption so that forecasts and sales orders don’t double drive demand from the
same requirement?
Forecast Consumption’s basic setup is simple and flexible:
Set profile: MRP: Consume Forecast to “Yes” site level.
For the parts you want to forecast at the org level, set the item attribute “Forecast Control” to “Consume” or
“Consume and Derive.”
o “Consume” is used when you are forecasting that item directly.
o “Consume and Derive” allows you to forecast the part directly or have the demand “derived” from a Planning