Forecast Demand and Safety Stock Calculations

[#1]

Hi all!

i am having the problem with forecast for Purchasing in QV.

Dimensions

• Delivered Qty
• Month
• Year

Expressions

• Safety Stock (Demand Qty * LeadTime)
• Demand Qty (not yet established)

What i would like to do is calculate the Demand qty based on the historical data i.e 2010,2011,2012,2013, and divide it through the allocated mths i.e 36

if there is no history i would like to build a similar function to look up on other articles history.

However, the problem is that the articles are season based, so irregular sales throughout they year.

is weighted averages more applicable in the calculation? has anyone experience of this from previous projects?

Best,

Brad

[Anonymous · Accepted solution]

Hi Brad,

I think it makes sense to assign weght to the time periods (months).  Weight could be calculated based on the historical data.

Regards,

Michael

[#3]

hi Michael!

thanks for the tip.

do you have any qvw. examples laying around with weighted average calculations?

Best,

Brad

[Anonymous]

Sorry Brad, I don't have anything ready to show.  It should be more or less straightforward, avg amount of each month name divided by avg amount of year will give you avg share of a month within year.

Regards,

Michael