Which order types consume the forecast in your Production Planning and Detailed Scheduling process?

In the context of Production Planning and Detailed Scheduling, sales orders are the types that consume the forecast. When a sales order is placed, it indicates a specific customer demand that directly aligns with the forecasted sales figures. This consumption of the forecast means that the planned production schedules and inventory levels must be adjusted to meet the customer orders.

Sales orders are directly linked to the overall sales strategy and demand planning, utilizing forecasts to ensure that production aligns with anticipated customer needs. When sales orders are entered into the system, they reduce the forecasted demand, necessitating adjustments in production schedules to fulfill these actual customer needs.

Other order types, while they play important roles in the supply chain process, do not consume the forecast in the same direct manner as sales orders. Planned orders, for instance, are generated based on the forecasted demand but do not represent actual customer orders until converted into production orders. Purchase orders relate to acquiring raw materials or components based on anticipated requirements rather than fulfilling direct sales. Dependent demand refers to the requirement for components or materials based on the production of finished goods, which is also driven by forecasts rather than consuming them. Thus, sales orders are the primary order type that directly consumes the forecast in the production process.