I would like to have MRP generate poroduction orders based purely on forecast - not sales order. Right now - with a forecast time fence = 0, then Baan plans to the greater # between forecast and sales orders. I only want the system to look at forecast

What is the best way to do this?

Hi Bryan,

You can't have the system to look only for forecast when you have sales order entered.
Planning engine will always consider sales order as independent demand and will explode that demand into lower level requirements.

With forecast time fence = 0 of course the system will take the greatest value between forecast and sales.

You can skip sales order entry if you want the system only to look for forecast.

Maybe it would help better if you can explain what situation are you in that make you end up with the requirement of only planning forecast.

Regards,
Hendra

Right now we make to order - and on some product lines we are switching to a make to stock (forecast) strategy. I know if Baan looks at each SKU and takes the greater # between sales and forecast - then my production requirements will be much greater than my capacity. I will illustrate my problem with an example...

Lets say I sell three items, A,B,and C

I have a capacity = 3 per week total units, regarless of mix
Week one, my forecast = 1 unit of each type

I want to have a make to stock/forecast strategy - so I want the system to tell me to build one of each type, regardless of sales.

Lets say at the end of week 1, actual sales are A=3, B=0, C=0. So my total forecast # is correct, but the mix is wrong. If I have my forecast time fence = 0, then the system will tell me to build 3 of item A, 1 of item B , and 1 of item C. It takes the > # of sales and forecast - and the total resulting production requirements are 5 - while my capacity = 3.

Hi Bryan,

You were saying that you know the actual demand is 3 for A and zero for B and C, yet you want the system to advise making 1 pcs each of A, B, and C, ignoring the actual demand?

If that is so, then you should ommit the actual sales order. The result is you won't be able to meet customer's demand, which is what most (I believe all) company is trying to avoid.

If you still put the actual demand then the system will behave exactly like you've explained because that is just its logic.

If you want to make only 3 pcs of A (your item for the make to stock strategy) then for B and C you can set the forecast time fence to other value than zero.

Hi Bryan,
I think, Hendra is right.
Most customer want in the next days only the sales-orders as demand, so set the forcast-time fence more then 0 days.

But if you need the function you described, sell your sales orders from a warehouse in an other cluster than the cluster of your forecast. You need 2 different planning items for each manufactured item then.
So you get in the one cluster the demand of the forecast and in the other cluster the demand of the sales orders.
But then you are producing 1 item A, 1 item B and 1 item C, but you need 3 items A for your customer.

best regards
Dirk