Corrected demand forecast(   ???)

hi
Out of 3 demand types I could see   Customer demand(coming from sales orders) ,forecast demand (coming from DP),then what is corrected demand forecast(   ???)
how does it arrive??  Is it  a aggregated value of first 2 demand types. plz lend a hand
thanks

Hi,
This depends on how you want to use the 'safety stock' as a constraint while planning with optimizer. You should consider few things while you decide on the level of the safety stock as a planning  constraint. Like you should always maintain safety stock violation penalty cost is greater than the product storage cost. If you dont, then optimizer will not plan for your safety stock.
The same way you can decide on whether you want safety stock violation as a hard or soft constraint by assigning some safety stock violation rule/cost.
So, depending on the business and importance of maintaining a minimum stock level at your inventory you can prioritize your goal of maintaining a stock level at least at product's safety stock.
Like you can prioritize safety stock as demand forecast. So, in case of supply shortage you can use safety stock to meet demands from the customer.
Hope this helps.
Thanks,
Satyajit

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