How is the Forecast used in the MRP Planning?

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Presenter: Sune Lohse, Chief Strategy Officer

How to use the demand forecast in the MRP planning in Business Central?

Let me show you how demand forecast is used in the MRP planning jobs to create demand in the future.



This is what happens in the video

So in Business Central, I have added some forecast.

I’m just going to that to show you how it looks.

It’s called production forecast here and I can view it per whatever period I prefer here and as you can see, I’ll have some forecast in September, October, November, etcetera, and it’s just quantities that I’ve entered in the forecast.

Actually, if I drill down to this forecast entry, I can see it’s just an entry in here with a forecast date.

In this case, first of October and a forecast quantity.

If I’m changing the forecast for instance to a 105 like this and I drill down now, I can see it just created a new entry on the same date. So it sums up in the planning and say, this is a 105 on the first of October. So that’s the input for the MRP planning and the forecast period will be by default from this forecast entry till the next one. So if I have to find an entry in November, the period on October will be until October 31.

Therefore my December forecast has no ending period, and maybe if I also made other forecast entries just like this to mess it up a little, I can see my hundred and five here and I’m making on this period here another 23.

So I can see now that’s the 14th of October. This also means I have changed the forecast period from 1st of October to 13th of October.

Let’s see how it works in the MRP planning.

This is an example of sales orders written below. I have some dates, item numbers, pieces, like you can see here a 108, 182, 36, 130, etc, and I’ve entered forecast of 125 pieces each first day of the month. So this is my cross input to my demand planning. Now what the MRP planning does is actually this looks into each period saying there’s a forecast period from 1st of April till 30th of May, sorry 30th of April.

In that period, there are sales orders of a total of 130, meaning more than the forecast, therefore the forecast entry below here will be deleted on a taken into account. The entries that match is not used in the planning.

Whereas in the next month, we have sales orders of 80 pieces, 33 pieces, meaning a 112, therefore, the remaining forecast is 12 pieces. So all these requirements here in the bottom is what the MRP planning batch job will use as input for the planning. So the forecast is only making sure that we at least has a demand on the forecast quantity.