User Manual

Forecasting

The Procurement -> Forecasting section contains a list of procurement forecasts, which can be calculated based on a sales forecast of products. 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?

What is a procurement forecast?

A procurement forecast calculates the material requirements based on estimated sales of products in the future. The forecasting functionality consists of two separate functions.

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

The second part of this functionality uses material and capacity planning to:

  1. Calculate when Manufacturing Orders can be started for the products.
    Starting from the MRPeasy Enterprise plan, 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. 

The procurement forecast has two sections the user can access:

  1. The products - the list, quantities and due dates of the products.
  2. The materials - the list of materials which are needed to build these products, and the dates when Purchase Orders need to be sent out for materials to be received on time for production to start.
When calculating the materials, it's possible to choose whether the current inventory levels should be considered, or not.

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.