Good evening.
I need your help in order to understand the issue of the forecast requirements reduction. Although I have searched and i have read from various resources, I am still not confident enough that I have really understood it. Fore example, at the "SAP Material Requirements Planning (PP-MRP)"
book I am reading (page 29):
"Features:
The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the material withdrawal so that the forecast requirement quantity that has already been produced is not included in the planning run again."
So far, so good. What i understand is that system compares actual consumption with the forecast requirement and it adjust the requirement's
quantity accordingly. But, immediately bellow, at the same page, it reads:
"Reducing Forecast Requirements:
Reducing forecast requirements by consumption:
If consumption is higher than the forecast requirements in the current month, then the system also reduces future forecast requirements.
Reducing current forecast requirements by consumption:
If consumption is higher than the forecast requirements in the current month, then the system does not reduce future forecast requirements."
At this point, i am completely lost. Shouldn't be the other way round? If consumption in this month is higher than the requirements, shouldn't
system increase next month's forecast requirement? Why next month's forecasting requirement should be reduced?
I would really appreciate it if you could also point me to any further resources regarding requirements consumption you think would be useful to me,
since so far i had no luck in understanding it.
Best personal regards to all,
Nikos