Please ensure the requirements parameters include forecast as demand:

Else, I think you should provide an example to better understand the issue.

Please ensure the requirements parameters include forecast as demand:

Else, I think you should provide an example to better understand the issue.

Dear Julien

Thanks a lot for your response

I had the Forecasts not calculated and now its working 
I am trying to have also a better view on the MRP output .  I am have done the Demand Horizon as 4 months and now its working .

in our business process - we are trying to freeze four months of Customer Sales Orders and for Month 5 to 18 is forecasts .

our idea is to always do the procurement  calculations based on forecasts from our clients .  i would like to know your opinion if this is a good calculation or not or if you reccomend anything else from your experience in MRP implementations. 

I am considering that all active ingredients for production are bought on MRP and not ROP . 

Hi Faris, first of all I see the demand forecast is properly setup.

Then I have no clear answer for you. I understand your question as : "it best to produce on demand or from a sales order?" To me buying on forecasted sales allow to better drive your supply chain (hence saving money) but you take a risk of having a wrong forecast and having too much stock on hand or a shortage. So the questions you have to answer would be:

- are you able to calculate reasonnably correct forecast?

- what is the cost of having an incorrect forecast?

From my experience, companies that can afford to have long shipment lead-time are buying on sales demand (MTO model). Companies that might lose the sales if the stock is not there when the customer place an order, will use forecasts (MTS model).

I hope this will hep you to assess the impact of your strategy.

Hi Faris,

I think one option would be setting your demand horizon to 4 month as you did, so that the system would ignore forecast the in the next four months. Then, under Setup -> Stock -> Requirement Parameters, check the "Forecast Offset" checkbox under the requirement, and make sure your bucket size for the 5th month and onward is greater than or equal to how you forecast. For example, if you are doing weekly forecast, you want to make sure you bucket size is by week or by month. 

What this will do is, for each bucket outside of the demand horizon, MRP will offset your forecast demand with your sales order demand. It compares the total of your forecast demand against the total of your firm sales order demand, and only take the greater of two as base for MPR calculation. 

So unless you receive large sales orders 4 month in advance and the total quantity is greater than your forecast, otherwise, MRP should suggest you to build/buy based on your forecast.