Forecast Demand Time Fence
The Forecast demand time fence option specifies the number of calendar days (0 to 999) to add to the planning run date to set a time fence for forecast demand. It must be set for the manufacturing branch and is used by the planning programs (MFP, MRP, MPM, etc) to calculate a time fence date for forecast demand (i.e., planning run date + nnn calendar days in the future).
The forecast demand time fence works in conjunction Spread forecast (maintained by item in Branch Item Maintenance); it is independent of IMB's Exclude past due? option and works with both regular and family forecasts.
The forecast demand time fence allows you to control the period of time for which you just want to consider actual independent demand, ignoring forecast. The time fence date is compared to the end date of the forecast spread period; if spread is zero, then it is the end date of the forecast period. Typically, this is for the short term horizon where you have customer backlog that creates all needed demand. By excluding close-in forecasts, production can focus on what is needed to support shipping and safety stock replenishment.
Unconsumed forecast inside the time fence is not included in demand; unconsumed forecast outside the time fence is included in demand. For example:
You sell widgets that come in red (50%), white (30%) and blue (20%). If you forecast a family of these items for a quantity of 100, you will have individual forecasts of 50 red, 30 white and 20 blue. If the period has actual orders for 30 red, 40 white and 30 blue, you still have orders for 100. Planning says you need 50 red -- not the 30 you have actual orders for -- so the total requirement is now 120 not the 100 you forecasted. By implementing a forecast demand time fence you can eliminate the forecast for the short term horizon.
See detailed examples.