Forecast consumption occurs when forecasted quantities are reduced by a reduction key or by actual orders during forecast scheduling. Forecast consumption results in smaller forecasted quantities being transferred to master scheduling to calculate net requirements.

Example 1

This example illustrates how a reduction key consumes sales forecast requirements. You must link the reduction key to the item's coverage group and select Percentin the Reduction principledrop-down list in the Master plans form. Set up the Reduction keys form with the following lines:

Create a sales forecast of 1000 pieces per month. If you run forecast scheduling on January 1, the sales forecast requirements are consumed according to the percentages that are specified above, and the following requirement quantities are transferred to the master plan:

Example 2

This example illustrates how actual orders consume sales forecast requirements. Select Purchase/sales ordersin the Reduction principledrop-down list in the Master plans form. The following sales orders exist on January 1:

Using the same sales forecast of 1000 pieces per month, the following requirement quantities are transferred to the master plan: