Using Demand Forecasts for S&OP in Microsoft Dynamics AX 2012: Part 2

Demand forecasts - also termed sales forecasts - often provide a key element of the Sales and Operations Planning (S&OP) game plans for stocked products. Effective use of demand forecasts involves several interrelated issues, such as the relevant time increments and due dates, forecast consumption policies, and master scheduling logic. Many firms have struggled with these issues, and they experience problems in coordinating supply chain activities.    

As the second of a two-part article, this article builds on the basics of demand forecast information and forecast consumption logic covered in Part 1.  It provides additional suggestions for using demand forecasts within Microsoft Dynamics AX 2012 to support S&OP for stocked products, and describes other purposes of demand forecasts.  Many of the suggestions also apply to Microsoft Dynamics AX 2009, and the key differences are highlighted.  These topics are reflected in the following sections within the article, where section numbering reflects the additional sections within Part 2.

4.    Suggestions for Using Demand Forecasts

5.    Other Purposes of Demand Forecasts

6.    Key Differences between AX 2012 and AX 2009

7.    Summary

4. Suggestions for Using Demand Forecasts

Many of the suggestions for using demand forecasts have been covered in previous sections within Part 1 of the article.  Examples include the typical business process to maintain demand forecasts and S&OP game plans, the definition and use of forecast models, using demand forecasts in the master scheduling task, and the dominant business practices concerning forecast consumption policies and reduction keys.

This section provides several additional suggestions, starting with the time horizon, time increments and due dates for demand forecasts.  It provides ideas about demand forecasts for a customer or a group of items, ...