This is what happens in the video
Demand forecasting in Business Central lets you tell the planning engine about expected future demand, so the MRP run creates supply to cover it. When you include a forecast in the planning worksheet, Business Central generates supply suggestions that account for the forecasted quantities on top of actual demand.
You enter forecast quantities per item and location in the demand forecast view. If you do not select a forecast entry when you run MRP, the calculation ignores the forecast completely and only plans against real demand.
The forecast drives the planning lines. Adding forecast quantities changes the inventory profile and produces different, usually higher, supply suggestions in the planning worksheet.
What demand forecasting does in Business Central
The demand forecast you enter in standard Business Central is there to create supply. It makes sure you replenish an item in the correct quantities by telling the planning engine what you expect to sell or consume in the future, even before the actual orders arrive.
You enter the forecast in the demand forecast view, where you specify quantities per item and per location. When you run MRP planning, you can choose whether the calculation should include this forecast or not.
Running MRP planning with and without forecast
You start by going into the planning worksheet to run an MRP plan within whatever filters you need. The key choice is whether you select a forecast entry before running the plan.
If you run the plan without selecting a forecast, Business Central calculates supply based only on actual demand. It still suggests action messages such as creating new orders, rescheduling, or cancelling, but it does not look at any forecast you may have entered.
If you run the plan and include the forecast, the figures in the planning worksheet change. The suggested quantities become higher because the calculation now covers both actual demand and the forecasted demand.
How the forecast affects the inventory profile
To see what is happening, you can use the graphical profile. This is a free app on AppSource that visualises the inventory development for an item and helps explain the planning lines.
Without the forecast, the graphical profile for the item shows the inventory dropping to a minimum of -72. That is the picture when only real demand is considered.
When you include the forecast, the same profile shows the inventory dropping to -124. The forecast quantity adds demand, and you can see it creates extra triggers where the inventory goes significantly lower. Those triggers are what cause the planning engine to suggest more supply.
What this means for replenishment
The difference between the two runs is the whole point of the forecast. By entering expected demand, you let MRP plan supply that you would otherwise only react to once the real orders hit. The result is that you replenish your items in the correct quantities and at the right time, rather than running short when forecasted demand becomes real.
Q&A
What is demand forecasting in Business Central used for?
It is used to create supply. By entering expected future demand per item and location, you tell the MRP planning engine to replenish those items in the correct quantities before the actual orders arrive.
Does MRP planning include the forecast automatically?
No. You have to select a forecast entry when you run the planning worksheet. If you do not select one, the calculation ignores the forecast and plans only against actual demand.
How can I see the effect of the forecast on inventory?
Use the graphical profile, a free app on AppSource that visualises an item’s inventory development. In the example, the profile drops to -72 without forecast and to -124 with forecast, showing the extra demand the forecast adds.
Where do I enter the forecast quantities?
You enter them in the demand forecast view in standard Business Central, specifying quantities per item and per location.