A demand plan helps to maintain the right amount of inventory by planning the future amount for items required by analyzing previous requirements.
To create a demand plan,
- Select the subsidiary and location of items for which demand for inventory is calculated.
- Select any of the following projection methods
1. Linear Regression: Uses previous demand to project future inventory needs based on steady
linear growth
2. Moving Average: Uses previous demand to calculate the overall average stock level needed,
then projects future stock levels using that overall average
3. Seasonal Average: Uses previous demand to examine the seasonal trend of inventory flow,
then projects a similar seasonal trend for future stock levels
4. Sales Forecast: This option uses sales forecast data to project inventory demand.
- Select the projection interval as weekly or monthly
- Select the projection start date
- Enter Projection duration- calculate the estimated upcoming demand for the given duration.
- Enter Historical analysis duration – assess previous demand for items in the selected duration
To enable features for demand planning:
- Go to Setup > Company > Enable Features.
- On the Items & Inventory subtab, check the Demand Planning box.
- Click Save.