Demand planning helps establish an accurate Reorder Quantity (ROQ) which ultimately drives suggested purchase quantities for Projected P/Os.
You will need to plan for Sporadic Demand as well as Unusual Demand.
Products with sporadic demand are those that are sold infrequently. To forecast ordering for sporadic demand, Inform first tries to identify the Mode from the last 12 months demand, and if there is none, then uses a Median Average Demand of the previous sale quantities to determine the ROQ with a goal to keep enough in stock for most sales without over ordering. Review these products with Sporadic Demand and override system suggestions by setting a Max Stock Quantity.
Unusual demand patterns can lead to a skewed ROQ, as formulas are based on demand. Such patterns may include one time purchases from customers or a downward trend in a traditionally fast moving product. Review these products with Unusual Demand and correct exceptions by setting an AdjustmentThe adjusted quantity, which is the difference between the current on hand and the new on hand value. For example, if there are 10 items currently on hand, and 3 is entered as the adjustment, the new on hand is 13..