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.
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.
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.
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.
Create Lot Size (Tcode:OMI4)
Lot Size YR is configured as shown below with no of period as 12.
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
- Maintain consumption values (MM02)
- Execute Forecast ( MP30)
- Stock Requiremnt List (MD04)
- 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.
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.
MRP executed. System will generate individual purchase requsition(PR) against each forecasted requirement as displayed below.
Forecast-Based Planning – MRP Procedures – SAP Library
Thanks & Regards,
I am PM Guy's but this is very helpful document for better understand to Forecast based planning.
Thanks for sharing your knowledge.
Thanks for your feedback.
Thanks & Regards,
Thanks a lot for sharing such a wonderful document. Keep sharing.
Thanks Kalyana for your valuable feedback.
Thank you very much for the document.
Thanks Sethuraman for feedback.
Thank you very much Ram! to show what exactly happens in the system!
Thanks Radhaakrishnan for your feedback.
Very useful document.Forecasting is understood very well.
Thanks for sharing...
It is really a superb reference . Excellent documentation with screen shots.
Ramesh VC 🙂
The above document on Forecast based Planning is very userful and Excellent documentation with screen shots. Do you have any document on TIME PHASED Planning ? If so Please share the same.
Very useful document.Forecasting is understood very well.Thanks for sharing...
Thanks for sharing . Very usefull and easily understandable document, keep sharing documents like this..
Very nice document
But Is there any document which explains the implementation of Time phased planning?
Thanks for the document.Could you please advise if i want to create Purchase Requisition of one period of quantity 100 and others periods(remaining 11 months) it should display as forecast requirements.What i need to do.
Can you please suggest.
I had the same issue. What i did was to define Planning Horizon (through MRP group customisation (OPPR or OPPQ) as X days (60 days in my case) and then I run MRP with MRP key = NETPL (net change in planning horizon). This will create planned orders or PRs (based on your settings) only within the 60 days period. The rest requirements will remain only as displayed; no planned order or purchase requisition will be created for them.Bellow is a screen with a relevant example from my system; it actually is from a simulation scenario, but the principle and the result would be the same.
Thanks Nikos for yours Reply.
Can you please share the screen shot where i need to maintain value as 60.
You enter the plant number and then you press maintain. In the new pop-up you enter the MRP group of the respective plant
You press "Maintain". In the following screen, you press "Planning Horizon"
In Planning Horizon, you maintain the number of dates you wish
And then, in MRP (ie MD01) you choose NETPL as MRP processing key
Thanks for yours reply.But i did not find NETPL(Net change in planning Horizon) processing key in my system.
Can you please suggest.
NETPL is one of the 3 standard keys in MD01 transaction (as it is displayed in my last screen of my previous message). It should come up when choosing this field. If not, please ask your supervisor or your consultant why this is not displayed.
Still i am not able to get resulted data because processing key NETPL is not available in S4 HANA.
I am one requirement that while executing the MRP system should not consider the available stock.As highlighted in the picture system should generate PR of 1250 but system is considering available stock of 150 quantity and generating PR of 1100.
My requirement is that while executing it should generate PR of quantity 1250.
Good morning Prakhar.
IF I remember correctly, including current stock in the MRP calculations depends on the MRP type you are using. Based on this, the system chooses net or gross requirements. In net requirements, current stock is considered.
From your screenshots, i see you are using MRP type ZZ. Please refer to this MRP type customisation and check the procedure it uses. For example, reorder point planning, forecast-based planning, and material requirements planning uses net requirements calculation.
I would also welcome the answers of other SCN members on this.
Bellow it is a screenshot from my system (MRP Type = ZD --> MRP procedure with required forecast, and forecast is transferred to demand management through transaction MD70)
Any suggestions how we can solve this.
Unfortunately, i do not know how to do this. However, i will check and let you know.
In the mean time, i would welcome the opinions of other contributors...
Absolutely Perfect document with simple example for Forecast based planning.