Re: Forecasting by item VS forecasting by family

Forecasting by group sounds good on the surface but there are some
ramifications. At some point, time phased replenishments (MPS, MRP, DRP)
need to be generated at the SKU level. You do this by defining a 'spread
profile' (on the respective module forecast menu eg MPF, MRF, DRF) that
takes the group forecast number and applies a percentage to generate the SKU
forecast. Effectively this is a product mix. If there is not much
variability in your product mix, this is not too bad.

However, there is not a mechanism within JBA to alert a planner that the
product mix has changed to the point that action must be taken. Additionally
an operator would need to key in the new product mix. If you have a forecast
group that contains a large number of items, the task can be daunting. Of
course custom coding could be developed to address this issue.

If you are using the MPS module for replenishment of purchased items, you
can also choose to define a planning bill of material instead of the
individual spread profile percentages but the changing product mix issue
would still apply.

Hope this helps.

Greg Wieczorek
VersiFit Technologies
630 750 3953
----- Original Message -----
From: <KYales@genfast.com>
To: <JBAUSERS-L@midrange.com>
Sent: Thursday, May 10, 2001 8:55 AM
Subject: Forecasting by item VS forecasting by family


> We are getting ready to start using forecasting.  Geac is suggesting that
> we forecast by families.  Conceptually that sounds great for a
> manufacturer, but we are a distributor.  I'm not so sure that this is will
> be the best way for us to forecast.  I would love to hear from any
> distributors who are currently using forecasting.  Are you forecasting by
> families or by item? If you are forecasting by families, how did you break
> down your parts into separate families?  Any information would be great!
> Thanks,
>
> Kathy Yales
> Material Planning
> General Fasteners Co.
>
> (734)452-2294 Phone
> (734)591-2400 Fax
>
> +---
> | This is the JBA Software Users Mailing List!
> | To submit a new message send your mail to JBAUSERS-L@midrange.com.
> | To subscribe to this list send email to JBAUSERS-L-SUB@midrange.com.
> | To unsubscribe from this list send email to
JBAUSERS-L-UNSUB@midrange.com.
> | Questions should be directed to the list owner: doug333@aol.com.
> +---
>

+---
| This is the JBA Software Users Mailing List!
| To submit a new message send your mail to JBAUSERS-L@midrange.com.
| To subscribe to this list send email to JBAUSERS-L-SUB@midrange.com.
| To unsubscribe from this list send email to JBAUSERS-L-UNSUB@midrange.com.
| Questions should be directed to the list owner: doug333@aol.com.
+---