I am testing Seasonality Replenishment
The help is a bit vague - it says useed to reduce of increase repl qty
I am finding the factor shown below is reducing the repl qty
Is this correct ?
Solved
Seasonality Replenishment
Best answer by PaulMainard55
I’ve always understood this feature as a means to adjust forecasted demand, and the factor is a percentage increase or decrease of historical daily demand to predict future demand. This feature is used for calculating replenishment parameters, such as Reorder Points and Safety Stock when using your moving average forecasting model.
As I understand it, the factor is used calibrate historical daily demand over the period defined in your forcasting model, and adjusts the projected demand for the upcoming season.
This article explains it better than I can. Configuration of Replenishment: Demand Forecast Model
Generally speaking, it applies a statistics-based algorithm to calculate historical daily demand over a period of time for the purposes of helping business owners to optimize their inventory levels so as not to overbuy, while minimizing their risks of stockouts.
Not sure if this is helpful, but give it a read.
+3
I’ve always understood this feature as a means to adjust forecasted demand, and the factor is a percentage increase or decrease of historical daily demand to predict future demand. This feature is used for calculating replenishment parameters, such as Reorder Points and Safety Stock when using your moving average forecasting model.
As I understand it, the factor is used calibrate historical daily demand over the period defined in your forcasting model, and adjusts the projected demand for the upcoming season.
This article explains it better than I can. Configuration of Replenishment: Demand Forecast Model
Generally speaking, it applies a statistics-based algorithm to calculate historical daily demand over a period of time for the purposes of helping business owners to optimize their inventory levels so as not to overbuy, while minimizing their risks of stockouts.
Not sure if this is helpful, but give it a read.
Thank you Paul that looks like some great information
I will need to study more to see if I can understand my testing below
Configured replenishment parameters without seasonality
The system calculated a daily demand forecast of 308
Using the same item same parameters, I added the Seasonality below
The system calculated a daily demand forecast of 123
The difference is the seasonal factor
I am surprised the Seasonal reduce the demand forecast
+3
The way I read it is that the seasonality factor is divided into the daily demand as a means of normalizing your demand. So, if you’re calculating historical daily demand from the previous month/quarter/year, you’re telling the system that your demand from April through November is 2.5 times higher than normal. Therefore, Acumatica takes that demand factor and adjusts the daily demand for that period and reduces it to arrive at the normal daily demand for upcoming season. At least, that’s how I interpret this.
If Tim Griffiths is still at K&R, he’s a bit of a distribution guru if I’m not mistaken. He might be able to help you navigate this. I hope that helps.
Perfect that make sense thank you
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.