Demand patterns for products selling an average of 10 times a month are different from those for products selling an average of 10 times a year. Therefore, the system forecasts product demand based on variable forecast periods.
On average, the following is true:
Fast-moving items use shorter forecast periods because most recent sales are the best for predicting future demand.
Slow-moving items use a longer forecast period, because you need more time and purchase for accurate predictions.
Seasonal products, which are in greater demand at certain times of the year than for non-seasonal products, use the demand history from the prior year's season.
In addition to setting forecast period parameters at the product level, you can also set these parameters at the branch or buy line level. Parameters set at the product level override those set at the buy line and branch level.
Note: The following procedure is a manual process for a single product. Use the Mass Load program to enter inventory parameters for groups of products.
To enter product demand parameters:
In the Product Forecast Parameters dialog box, from the File menu, select Demand Parameters to display the Product Demand Parameters dialog box.
From the File menu, select Insert Branch to display the Product Demand Parameters dialog box.
In the Enter new branch or territory field, enter the branch or territory ID.
Click OK to return the ID to the Branch field in the Product Demand Parameters dialog box.
To enter non-seasonal demand parameters for a branch, under the Regular column, complete the following information:
Column |
Description |
Hits |
The number of hits the system looks for within the regular Minimum Days and Maximum Days range to calculate the number of days of sales history used to calculate a non-seasonal product's demand. |
Minimum Days |
Minimum days used with regular Hits to determine the number of days of sales history used to calculate a non-seasonal product's demand. |
Maximum Days |
Maximum days used with regular Hits to determine the number of days of sales history used to calculate a non-seasonal product's demand. |
Click to see an example of regular demand parameters.
Note: If the date of the first transaction for a product is less than the maximum days, the demand history calculation program populates the Maximum Days field with that date. If the date of the first transaction for a product is also less than the minimum days, the program also populates the Minimum Days field with that date.
To enter seasonal forecast parameters for a branch, under the Seasonal column, complete the following information:
Column |
Description |
Hits |
The number of hits the system looks for within the regular Minimum Days and Maximum Days range to calculate the number of days of sales history used to calculate a seasonal product's demand. |
Minimum Days |
Minimum days used with regular Hits to determine the number of days of sales history used to calculate a seasonal product's demand. |
Maximum Days |
Maximum days used with regular Hits to determine the number of days of sales history used to calculate a seasonal product's demand. |
Click to see an example of seasonal forecast parameters:
Note: If the date of the first transaction for a product is less than the maximum days, the demand history calculation program populates the Max Days field with that date. If the date of the first transaction for a product is also less than the minimum days, the program also populates the Min Days field with that date.
Changes take effect when you exit Product Maintenance.
More Options in the Product Demand Parameters Dialog Box
The Product Demand Parameters dialog box also offers these options:
To... |
Select this menu option... |
remove a branch from the Product Demand Parameters dialog box, select the branch and |
File > Clear Branch |
find a branch that is not currently visible in the dialog box |
File > Find Branch The Product Demand Parameters dialog box displays. In the Enter branch or territory to find field, enter the branch or territory ID and click OK to return to the Product Demand Parameters dialog box. The cursor moves to the requested branch. |
toggle between prompting for a branch to display branch-specific parameters and displaying all branches |
File > Toggle Hierarchy The Product Demand Parameters dialog box displays. In the Enter hierarchy branch field, enter the branch or territory ID to which you want to toggle and click OK to return to the Product Demand Parameters dialog box. |
Edit > Auto Trend The Product Auto Trend Maintenance dialog box displays. |
See Also: