Introduction to Forecast Simulation
Course Overview
General Forecasting System Flow
• Customer places sales order
• Extract Sales History
• History drives Forecast Simulation Calculation
• Forecast Simulation Calculation and Sales Orders feed MRP Calculation
• Manufacturing supplies needs of MRP Calculation
Terminology
Abnormal Sales
When unusual, unanticipated sales demands are discounted from normal sales demand. Example, sales related to a natural disaster. Often called an “outlier” in statistics. See
Modifying Forecast Results.
Forecast Consumption
Reducing the forecast quantities by the confirmed sales order quantities. See
Forecasting Consumption.
Trends and Cycles
Multipliers for increase or decrease in demand; and repeated patterns of varying demand. See
Sales History Patterns.
Regression Analysis
Statistical method to determine the best relationship between a response and independent variables. See
Simple Regression.
Forecast Simulation Life Cycle
This life cycle is explained in detail in the Setup chapter. See
Lifecycle Summary.
Typical Users
Various people typically control key tasks. This chart illustrates typical users and the most common tasks in Forecast Simulation with which they would be involved.
