Entering Forecast Parameters for Products

Forecast parameters filter transactions to determine product demand so that the demand forecast is accurate. Forecast parameters define boundaries for how the system suggests when to replenish products in your warehouse. For example, based on the product history, the system uses the settings you define to determine how much you need to keep on hand to fulfill expected sales.

Forecast parameters are set at the product, branch, or buy line level. Set forecast parameters at the product level to override settings at the branch or buy line level. Assign forecast parameters at the product level to filter demand, set the forecast method and forecast period, and to calculate a product's economic order quantity (EOQ).

Note: The following procedure is a manual process for a single product. Use the Mass Load program to enter inventory parameters to groups of products.

To enter forecast parameters for a product:

From the Files menu, select Product to display the Product Maintenance screen.
Select a product.
Use the Inven hot key to display the Primary Inventory Maintenance screen.
Use the Forecast Params hot key to display the Forecast Parameters Maintenance screen.

Complete the following fields, as needed, to define the parameters you want on this product:

To...	Use this field...
Indicate whether the system uses the standard or median forecasting method for this product. If left blank, the system uses Standard forecasting.	Fcast Methd
Indicate whether the product sells more at certain times of the year than at other times. For example, you generally sell more heaters in the winter than in the summer. Use the Forecast Params hot key to define the forecast period parameters to identify which time frames to include for seasonal products when the system calculates the forecast.	Seasonal
Enter the maximum number of days in the forecast period that the system uses to increase an item's raw demand to compensate for lost sales of a product.	Lost Sale
Enter the exceptional sales percentage for the product. The system eliminates from demand forecasting any sale exceeding the percentage difference between the two largest sales in the forecast period.	Excpt%
Enter the positive or negative percent to change the calculated demand forecast in anticipation of a trend increasing or decreasing the demand.	Trend%
Enter the backorder tolerance quantity above which hits are excluded from the demand forecast calculation. The BTQ number indicates how many backordered items you want to include in the forecast calculation.	BTQ
Enter the minimum number of most-recent purchase orders the system samples to calculate the lead time for the product. The lead factor indicates the maximum number of processed purchase orders in the forecast period and the system uses this number to derive lead time days.	Mn LF
Define how the system calculates lead time for the product. The lead factor indicates the maximum number of processed purchase orders in the forecast period and the system uses this number to derive lead time days. If greater than zero (0), this is the maximum number of most-recent purchase orders the system samples to estimate the lead time for the product. If zero (0), the automatic calculation of lead time for the product is turned off and the system uses the value in the Lead Days field for the lead time. If null (blank), the system uses the lead factor set for the product's buy line. Note: Seasonal products use a lead time calculated for the season.	Lead Fctr
(View Only) The lead time for this product. This field updates when Lead Fctr is greater than 0 (zero).	Lead Days
Enter the theoretical cost of reordering and restocking a single item, used in calculating the EOQ of the product. We recommend using 1.00 for $1.00.	EOQ$
Enter the carry cost percentage used in calculating the EOQ of the product. We recommend using 28 for 28%.	EOQ%

Press Esc to save changes and return to the previous screen.

Changes take effect when you exit Product Maintenance.

More Options for Entering Forecast Parameters

The Forecast Parameters Maintenance screen also offers these options:

To...	Use this hot key...
View the components of the demand forecast calculation	Audit
open the User Inventory Controls screen, where you can: set minimum and maximum stocking levels for the item add the product demand from a dependent selling branch to a purchasing branch add service stock	User Controls
View product availability and inventory information for the item	Inv Inq
Enter forecast period parameters	Forecast
View the default cost for the item	Cost
Override product lead time	Lead Time