Overview

The scenario includes both manual capturing of inventory consumption plan data for a specific business unit and population the inventory consumption plan with the data calculated by the statistical model. The inventory consumption plan data captured this way must be further checked, consolidated at the enterprise level, adjusted taking into account company-specific and other parameters not taken into account in the data calculated by the statistical models.

An independent consumption plan includes the demand for products and materials not related to the direct production of products. For example, materials consumed for marketing campaigns.

Aggregation levels of forecast data depend on business needs. Typically, the item of material and certain warehouses are used as a level of aggregation. The rules for aggregation and consolidation, as well as the planning horizons, must be aligned with operational and financial planning.

As internal sources of information, you can consider past period actual inventory consumption or/and past period inventory consumption plans.