Generate budget planning from the forecast demand/supply

Demand forecasting is different from master planning. It’s a long-term plan used by companies to anticipate demand/supply. This paper explains the data source that will feed our budget planning. So, we will not explain how to produce a forecast automatically, because it is a matter of master planning.

The activities for planning to create the original budget are:

Insert the demand forecast;
Insert the supply forecast;
Generation of the original demand budget
Generation of the original supply budget

Insert the demand forecast

Go to: Master planning> Forecasting> Manual forecast entry> Demand forecast lines.

Create a new forecast and insert at least these data:

Model: Use a dedicated model for budgeting planning
Date: Inset a start date;
Customer/Customer Group: Insert the reference date of our customer (group or specific customer);
Item/Item group: Insert the reference date of our item (group or specific item);
Inventory dimensions: Inset the inventory specification (site, warehouse, etc…)
Amount: Insert the amount forecasted (alternatively, we can insert the quantity and the unit price)

We can use the function “allocate forecast” to allocate the demand through time:

We’re going to find the forecast below the form:

Insert the supply forecast

Go to: Master planning> Forecasting> Supply forecast lines.

The procedure is the same as the demand forecast. Create a new forecast and insert at least these data:

Model: Use a dedicated model for budgeting planning
Date: Inset a start date;
Vendor/Vendor Group: Insert the reference date of our customer (group or specific vendor);
Item/Item group: Insert the reference date of our item (group or specific item);
Inventory dimensions: Inset the inventory specification (site, warehouse, etc…)
Amount: Insert the amount forecasted (alternatively, we can insert the quantity and the unit price)

We can use the function “allocate forecast” to allocate the demand through time:

We’re going to find the forecast below the form:

Generation of the original demand budget

Go to: Budgeting> Periodic> Generate budget plan from demand forecasts.

Here, select the flag to say if we want to consider our demand related to sales orders and internal consumption (we suggest flagging both flags to evaluate the overall demand forecast). At the end, insert a filter to consider the forecast insert just with our model: