Forecasting

Abstract

Since service parts planning is mainly a make-to-stock respectively a procure-to-stock process, planning is almost entirely based on the forecast. The forecast drives the procurement and replenishment of service parts either directly or indirectly as an input for the safety stock determination. The basis for forecasting is the aggregated demand history (including realignment and interactive changes). Depending on the forecast strategy, not only the demand quantity but also the number of order items and the average demand quantity per order item might be used as an input (per forecast strategy only two out of the three).