Demand is a filtered forecast of products being sold to the customers. The calculation of demand answers this question: "How much of the product is being demanded by customers?"
The system uses demand calculation to set order points, line points, and transfer points. In addition, demand determines surplus for the Suggested Purchase Order Queue and the Suggested Auto Transfer program.
For more information on order and line points, see the following topics:
Demand is calculated when the Update Demand program runs. You can audit the Update Demand program by accessing an individual product in the Product Maintenance window.
This topic provides information about the following:
To determine the amount of sales history to use to calculate demand, the Update Demand program first determines the number of hits for each product in each branch.
Then, the following rules apply to establish the amount of sales history appropriate to a product's rate of sale.
|
If a product has... |
then... |
|
25 or more hits in the past 91 days |
the system uses the sales of the last 91 days to determine usage. |
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less than 25 hits in 91 days but more than 25 hits in the past year |
the system totals the sales back to the occurrence on the day of the 25th hit. If more than one hit occurred on the day of the 25th hit, all sales on that day are included. |
|
less than 25 hits in the past year |
the sales for the past year are totaled together. |
Items that sell frequently are more predictable over short periods of time. By setting the Seasonal field to using Mass Load, you can identify items that have a seasonal sales character. The same rules apply to seasonal items, except that the system starts from a date beginning one year previous and moving forward to the present date.
Use the Add Demand window to add the demand history of one or more discontinued products to its replacement product or add a product's demand history in one branch to another branch. For example, you receive notice from your vendor that the furnace Model 721A is being replaced with Model 721B. You do not want to lose the sale history for the furnace. Transfer the demand history from the discontinued model to the new model.
Note: The Days Out calculation remains the same even if the customer is a Subtract Demand Customer as set up in the Add Demand program.
To display the Add Demand window:
From the File menu, select Product.
Enter the number of the product for which you want to view the Add Demand window.
From the Inventory menu, select Inventory Maintenance to display the Product Maintenance window.
From the Edit menu, select User Controls to display the Primary Inventory Maintenance window.
From the Additional Controls menu, select Add Demand to display the Add Demand window.
Use the
Use the
Update the demand information as needed and exit the window to save your changes.
Exit the Product User Control Parameters window.
Exit the Primary Inventory Maintenance window.
For more information, see Adding Demand History to Products and Adding the Demand from a Dependent Selling Branch to a Purchasing Branch.
The
You can override this setting at the customer level. Use Miscellaneous Customer Information to change the Branch Demand Override field to the selected branch. If this field is not set, the system uses the setting at the control maintenance level.
To change the Branch Demand Override:
From the Maintenance menu, select Customer to display the Customer Maintenance window.
In the Customer/New field, enter the customer name for which you want to override the branch demand and press Enter to display the customer record .
From the Additional menu, select Additional Customer Information.
In the Branch Demand Override/UET Parameters area, enter the branch number you want to use in the Branch Demand Override field.
Exit the Customer Maintenance window.
See Also:
How Eclipse Calculates Monthly Demand
How the System Calculates Trend for Seasonal Products