Forecast Based Planning – Yearly Consumption and Single PR for Forecasted Values

This document briefs the usage of Forecast based planning with yearly lot size and generating single purchase requsition for forecasted requirements against the consumption for year.

Introduction:

Forecast based planning is based on material consumption.It operates based on historical values and forecast values and future requirements are determined via the integrated forecasting program. Forecasted values form basis for planning run and have direct effect in MRP as forecast requirements.

Scenario 1:

Forecast based planning will generate monthly forecast values based on past one year consumption. System should consider the entire one year forecast values and generate only one purchase requsition after MRP run.

Approach:

Based on year consumption system will automatically generate the 12 months forecasted values upon executing the forecast. If we consider lot size as EX system will plan purchase requsitions individually for each forecasted values. Since 12 months values are forecasted then system will generate 12 purchase requsitions. Lot size plays crucial role in consolidating the entire requirements.

This type of requirement to be addressed by configuring new lot size with number of periods as 12,maintain forecasting periods as 12 months an executing the forecast. System will plan forecast values for 12 months but upon MRP run purchase requsition will be generated only ONE with entire forecasted values quantity.

Configuration:

Create Lot Size (Tcode:OMI4)

Lot Size YR is configured as shown below with no of period as 12.

Master Data:

Material Master Settings: (MM01/MM02)

MRP 1 view : MRP type – VV ( Forecast based planning) and Lot Size – YR

MRP 3 view : Period Indicator M

Forecasting View: Forecast Model D, Period Indicator M, History Periods 12, Period per Season 12, Initialization X, Model Selection A, Optimization Level F

Process Steps:

1. Maintain consumption values (MM02)
2. Execute Forecast ( MP30)
3. Stock Requiremnt List (MD04)
4. Run MRP (MD03)

Step 1: Maintain Consumption Values for the Material. (MM02)

For testing purpose consumption values are maintained for 12 months periods.System will automatically update the monthly consumption of the material based on the Material actual consumption.

Consumption values maintained from 03.2013 to 02.2014, Values are 100,100,100,100,100,100,100,100,100,100,100 and 100.

Step 2: Execute Forecast (MP30)

Enter the material number and plant press enter. System will display the below Execute Forecast screen.

Click on Historical values to see the consumption History as displayed below

Click on Execute below title bar for executing the forecast. Below screen appears. Select the forecast date. For the above example selected 03.2014.

Forecast is executed and see the forecasted values in the below screen. Once clicked on SAVE executed forecast will be saved.

Step 3: Stock Requirements List (MD04)

Since forecast period is for 12 months system forecasted for 12 months as shown below in stock requirements list.

Step 4: Run MRP (MD03)

MRP executed for the material to generate the purchase requsition

Stock Requirements List after MRP Run:

As discussed initially system consolidated all the forecasted values and generated only one Purchase Requsition (PR) for total quantity of 1200 as displayed below.

Note: If in Lot Size YR – Scheduling is selected as 2 (Period end = delivery date) then Purchase Requsition (PR) will be generated during period end with total qty of 1200 as displayed below.

Scenario 2:

What happens if lot size is changed to EX with all other data similar to scenario 1.

In Material Master -MRP1 view lot size changed to EX.

EX Config:

MRP executed. System will generate individual purchase requsition(PR) against each forecasted requirement as displayed below.

Reference :

Forecast-Based Planning – MRP Procedures – SAP Library

Re: Forecast Planning for one time material procurement in a year….

Thanks & Regards,

Ramagiri