Forecasting can seem impossible when manufacturing in an environment with a high volume of custom products. Multiple SKUs are used, and the components used in those SKUs are highly variable. So, what should be done?
If you are already using MRP in D365, one way is to follow these four steps.
1. Calculate the ave. forecast by SKU. – Calculate the ave. number of custom assemblies by SKUs you produce each month.
2. Calculate the attachment rate per component per SKU. – Calculate the ave. percentage you attach a given component to that SKU.
– For example, if you build SKU X 10 times a month, how many times does that build contain each component?
– If a component is included in each build that component would be 100%. If it is only 7 times out of 10 that would be 70%.
3. Setup Item Allocation Keys—In D365, Set up Item Allocation Keys for each SKU. Add all components and assign the Attachment rates.
4. Add a Demand Lines Forecast for each SKU Item Allocation Key.
Questions/Comments? Feel free to reach out.
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