A forecast is typically the anticipated customer demand for a product. MRP will use the sales order and forecast demands in conjunction with the effective production bill of material and by reviewing item inventory balances will generate planned supplies in a time phase manner to offset the outstanding demands for end items and sub assemblies.
A Forecast Demand record is for an item, with a starting period and ending period (forecast period) and the quantity of sales anticipated (forecast quantity) for that period. Create automatic forecasts through Item Usage Forecast for any time period using historical data, or manually create forecasts through Forecast Fast Entry or Forecast Demand based on both history and future sales.
MRP treats Forecasts as independent demand and creates planned work orders (for Manufactured Items), or planned Inventory requisitions (for Purchased or Subcontract Items), to cover the demand. Under this condition, forecast as demand drives the MRP Plan for manufacturing and purchase activity in advance of the Customer Order. Without a Forecast, MRP Plans for manufactured, purchased and subcontract items are not generated until an actual demand (customer order and/or manufacturing order) is entered by the user. For firmed (or greater supplies), MRP generates MRP Action Message (reschedule or excess messages) when, and if, appropriate, and provides information needed to adjust firm work orders and purchase orders as needed.
All inventory information, including summary and detailed review by item, can be viewed using Summary Review by Item and Detailed Review by Item to make informed decisions that help increase inventory turns.
