User Manual

Forecasting

The Procurement -> Forecasting section contains a list of procurement forecasts, what can be calculated based on the production forecast. This function is most useful when you make-to-stock.

The forecasting allows

  • creating and processing material forecasts,
  • calculating material requirements for building products (BOM explosion),
  • considering or ignoring current inventory levels of materials,
  • calculating action dates for placing purchase orders and starting manufacturing orders,
  • creating manufacturing orders based on the forecast,
  • creating purchase orders based on the forecast.

Jump to:

  1. What is a procurement forecast? How does it work?
  2. Tips for using the forecast.
  3. How to create a procurement forecast?
  4. How to forecast the materials for multiple sites at once?
  5. Why the amount of products in a forecast is limited to 12?

What is a procurement forecast?

A procurement forecast calculates quantities of parts, that are required to make selected products. The forecasting functionality consists of two separate functions.

The first half of this functionality is historically also known as BOM explosion, meaning that the BOM is 'exploded' to calculate the total number of required purchasable parts and materials.

Therefore, into the forecast, as input information, only products can be entered. The products must have a Bill of Materials and a Routing defined.

The second half of this functionality uses materials and capacity planning to:

  1. Calculate when Manufacturing Orders can be started for the products.
    Starting from the MRPeasy Enterprise edition, it is possible to define a Due date, which will then utilize Backward Production Scheduling to finish the products just-in-time for the due date.
  2. Calculate when the Purchase Orders must be placed so that materials will arrive on time for the Manufacturing Orders to start. 

When calculating the materials, it's possible to choose whether the current inventory levels should be considered, or not.

As output, the forecast provides the following information

  • Total materials requirements, if available stock is ignored. 
    Or, net materials requirements, if available stock is considered.
  • The date, when manufacturing orders for products can start the earliest if forward planning is used (available in all editions).
    Or, the date when manufacturing orders for products can start the latest to be completed by the Due date (available only in Enterprise edition.)
  • The vendor, the cost, the required delivery date, and the latest order date for each part or material, based on Purchase Terms.
  • Options to create Manufacturing Orders and Purchase Orders.

The procurement forecast has two sections the user can access:

  1. The products - the list of products.
  2. The materials - the list of materials.

While the forecasting is a powerful function, keep in mind these tips:

  1. This is best utilized in make-to-stock manufacturing.
  2. a forecast is only a forecast, just a general plan, until manufacturing orders are scheduled and purchase orders created.
  3. If you make-to-order, then you should create Manufacturing Orders, which will drive demand for purchased materials. Manufacturing Orders are always scheduled so that materials which are not in stock have time to be ordered.

Why max. amount of products in a forecast is limited to 12?

Forecast is very resources consuming functionality. For every product a substantial amount of complex calculations should be made. Because of that you cannot forecast more than 12 products at once, and cannot upload forecasts from CSV file.