Demand indicates how often a product sells per day or the average number of units sold per day. When calculating demand, the system looks at what was sold, compensates for lost sales, ignores exceptional sales and considers other demand filtering parameters. All demand parameters use system defaults but can be tailored to customer needs. The system calculates demand for every product in every warehouse each time the demand calculation is run. Demand determines the quantities the system suggests to purchase and to retain as safety stock. The calculation is as follows:
Demand per Day =
Total Demand in Forecast Period X Days in the Demand Period
Use the Update Demand Forecast program to forecast the demand of products in your inventory. The system consults the branch zip code table when calculating demand. If demand does not display as anticipated, ensure the zip code table is accurate and no changes have been made. Changes to Branch Zip Code table should be made with the assistance of Eclipse Support personnel. For more information, see Zip Codes Overview.
This program serves four primary functions. By product by branch, it updates the:
Several programs use the demand forecast data:
The plenty date calculation uses the lead time and buy line average lead time data.
The order point and line point calculations use the demand per day and lead time data.
The Maximum Days' Supply for a product is based on the demand per day.
The Product Ranking program uses the demand per day data for ranking products.
The Suggested P/O and Suggested Transfer programs rely on order point, line point, and product ranking calculations for suggesting purchases and transfers.
See Also:
Auditing the Demand Calculation