Demand Forecast

Hi,

Can i know what is the difference between an item allocation key and reduction keys? How are they used in forecasting? 

Please can anyone share your knowledge.

Thanks in advance!

  • An Allocation key enables a setup to forecast at a high level by a predefined percentage split of items, so makes Forecasting easier in a flat and consistent demand horizon.

    Reduction keys basically define how you reduce forecast at the supply calculation.
  • In reply to AdamRoue:

    I want the demand per Month to 'Flaten' demand across Month more evenly. How can i achieve this ? Because when i tried using the reduction key i couldn't achieve what needed. Is allocation keys can be used for the purpose?
  • In reply to Dhuryodhana:

    Your demand is your demand. You will arguably need to flatten this outside of AX, AX just uses what you enter.
  • In reply to AdamRoue:

    i am learning the demand forecating .. so i would be nice if you can explain?
  • In reply to Dhuryodhana:

    Okay so in that tool you export usage, manipulate it and import it. The manipulation would be a smoothing algorithm, but there are so many questions relating to source demand and requirements.

    Start simply, AX assumes you import the forecast and the detail level and date you require, then plans.

    Microsoft keep changing the demand forecasting tool because of specialist competition, not sure if it's current state, but never worked for my customers because of the complexity of the forecast.
  • In reply to AdamRoue:

    Will the allocation key help to flatten my monthly demand evenly, instead of an accumulated demand on 1st of every month?
  • In reply to Dhuryodhana:

    No the allocation key splits demand across items by a percentage, like forecasting finished items to get component requirements.

    You need to get the source forecast to not be for the month in the first of the month.
  • In reply to AdamRoue:

    SO how will i be able to flatten my forecast evenly across a month? any idea?
  • In reply to Dhuryodhana:

    How are you getting your monthly forecast?
  • In reply to AdamRoue:

    If your were to manually enter the forecast you can split it out into defined periods etc. So take a month and sit it over four weeks to create a different forecast spread.
  • In reply to AdamRoue:

    I generate the monthly forecast using the demand forecast tool considering tht sales orders duing the forecast horizon.
  • In reply to Dhuryodhana:

    Which demand forecasting tool? Why is it restricted to monthly forecasts?
  • In reply to AdamRoue:

    The customer uses the Demand forecast in AX 2012 CU10. They generate forecast in monthly buckets and when they integrate the forecast into the master planning, they want see that this forecast flattens spreads across the month so that they can have a better knowledge on how the orders are generate. Am i clear enough? or still is it confusing?
  • In reply to Dhuryodhana:

    They need to manipulate before integrating, so apply a splitting metric then import. Once in AX that is your forecast, change it before the import.
  • In reply to AdamRoue:

    What do you mean by splitting metric here? how can i add that?
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