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User Guide

1. General Information

2. Starting Up

3. Connecting data

4. Demand and Sales Forecasting

5. Inventory Planning

6. Reference


5.3. Generating Purchase Plan

After the data has been imported and all of the necessary replenishment parameters are set, we can generate the forecasts and replenishment plan. To do this:

1. Set the Horizon parameter to the number of time periods the replenishment plan should cover.

To calculate reorder quantity and safety stock accurately, the forecast Horizon should be set to be at least as long as the sum of the longest Lead time and Order cycle combination.

For our example, item L1010 has a lead time of 90 days and an order cycle of 3 months making the longest combination of 6 months. So, let us set the forecast Horizon to 12 months.

2. If the last period of sales history is incomplete, choose the Incomplete option in the As of control, otherwise, select the last period from the As of list.

In our example, it is the end of December, thus, we set the As of parameter to the last option – Dec 2015 (see figure below).

3. Click the Forecast button in the program toolbar.

Next: Viewing Purchase Plan and Projected Inventory Levels

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generating-purchase-plan.txt · Last modified: 2018/06/05 11:24 by admin