Forecast vs MPS

Is your source of demand from your customer or are you building inventory based on expected demand?

We use forecasts to drive demand to build inventory prior to receiving firm releases from our customers. The benefit is that we don't have to maintain "blanket sales orders" to drive demand (i.e. put in a line for 1,000 and then enter releases as we get the ship to locations and quantities against the releases)

Forecasts work okay, but here are the issues we have found:

There is nothing to prevent your sales orders from "over-releasing" against a forecast, which means that as soon as the sales order demand for that part exceeds the forecast, MRP will start planning against the sales order demand, which can cause you to build more than was orignally contracted from your customer

If you forecast for 1,000 and then release orders for 1,200, your forecast consumption will show 1000 and when you enter another forecast for that part it will consume against that quantity

You cannot move forecast dates out (i.e. if you decide that you do not want a forecast date of 11/1 you need to delete the forecast and create a new one. You can import/export your forecast but the import function can be erratic)


erwinjw <erwinjw@...> wrote:
Hi

We have looked at Forecasts and MPS entries. The problem we have is we
build components to stock in several batches over time, if we used a
forecast, as soon as the first job completes the second forecast is
satisfied and mrp does not suggest a job.

The MPS entry has functionality that we consider non-standard, in that
it consumes future demand, therefore you can enter a mps for 1, and if
there is demand in the future (e.g. 10,000) mrp will suggest a job on
the mps demand date for the 10,000. We had thought the MPS should be a
demand driver that would make the MPS amount on the MPS date regardless
of future demand. But that works fine for us.

Erwin

--- In vantage@yahoogroups.com, "wendorff1" <kelly.wendorff@...> wrote:
>
> We are looking at using one of these two tools (or a combination of
> both). Can anyone offer pro/con's of either of these tools? We
> typically receive blanket orders and Kanban orders from our customers
> and I'm trying to decided which option is better for us.
>
> Thanks!
>
> Kelly
>





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[Non-text portions of this message have been removed]
We are looking at using one of these two tools (or a combination of
both). Can anyone offer pro/con's of either of these tools? We
typically receive blanket orders and Kanban orders from our customers
and I'm trying to decided which option is better for us.

Thanks!

Kelly
Kelly, we use forecasting extensively and are looking at MPS. Would be glad to offer you some thoughts on it

wendorff1 <kelly.wendorff@...> wrote: We are looking at using one of these two tools (or a combination of
both). Can anyone offer pro/con's of either of these tools? We
typically receive blanket orders and Kanban orders from our customers
and I'm trying to decided which option is better for us.

Thanks!

Kelly





__________________________________________________
Do You Yahoo!?
Tired of spam? Yahoo! Mail has the best spam protection around
http://mail.yahoo.com

[Non-text portions of this message have been removed]
Hi

We have looked at Forecasts and MPS entries. The problem we have is we
build components to stock in several batches over time, if we used a
forecast, as soon as the first job completes the second forecast is
satisfied and mrp does not suggest a job.

The MPS entry has functionality that we consider non-standard, in that
it consumes future demand, therefore you can enter a mps for 1, and if
there is demand in the future (e.g. 10,000) mrp will suggest a job on
the mps demand date for the 10,000. We had thought the MPS should be a
demand driver that would make the MPS amount on the MPS date regardless
of future demand. But that works fine for us.

Erwin

--- In vantage@yahoogroups.com, "wendorff1" <kelly.wendorff@...> wrote:
>
> We are looking at using one of these two tools (or a combination of
> both). Can anyone offer pro/con's of either of these tools? We
> typically receive blanket orders and Kanban orders from our customers
> and I'm trying to decided which option is better for us.
>
> Thanks!
>
> Kelly
>