EDGEBIC How-To

How to Set the Forecast Consumption Rule in EDGEBIC

User Solutions TeamUser Solutions Team
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6 min read

To set the forecast consumption rule in EDGEBIC by User Solutions, open the product, go to the Inventory Planning section, and set Forecast Consumption Rule to Greater Of or Minus Consumed, then save. The rule decides how forecast demand and firm customer demand combine into the gross requirements the projection plans against, so that an order and its forecast do not both drive demand for the same period. Greater Of takes the larger of the two, while Minus Consumed lets firm orders eat the forecast first. Choose the one that matches how your orders relate to your forecast.

This is one product setting. To enter the forecast the rule acts on, see how to enter a demand forecast. The full task set is on the EDGEBIC how-to hub.

Before You Start

  • The product exists and is stocked, so it has an inventory projection.
  • A forecast for the product, since the rule only matters where forecast and firm demand overlap.
  • An understanding of how your firm orders typically relate to your forecast: replacing it, or adding to it.

Step by Step

  1. Open the Products tab and edit the product.
  2. Scroll to the Inventory Planning section.
  3. Set Forecast Consumption Rule to Greater Of or Minus Consumed.
  4. Click Save.

What Changes When You Save

The rule changes how gross requirements are built in the projection. Under Greater Of, each bucket uses the larger of forecast and firm demand, which never double-counts but can be pessimistic when the forecast is higher than actual orders. Under Minus Consumed, a firm order consumes an equal slice of the forecast first, then only the portion of firm demand above the forecast is added, which is the standard MRP-style consumption. Both avoid the naive mistake of adding a forecast and a firm order for the same period into one inflated number.

The setting is per product, so different items can use different rules depending on how their demand behaves. Nothing about scheduling or capacity changes: the rule affects the demand side of the inventory projection.

How to Check It Worked

Open the inventory projection for the product in a period where you have both a forecast and a firm order. Under Greater Of, gross requirements should equal the larger of the two. Under Minus Consumed, they should equal the forecast when firm is smaller, and the firm quantity when firm exceeds forecast. If the numbers still look like forecast plus firm stacked together, confirm the rule saved and that you are reading gross requirements rather than the two raw inputs.

Common Mistakes

  • Expecting the rule to change the schedule. It shapes demand in the projection, not operation timing or capacity.
  • Using Greater Of when orders replace forecast. If firm orders arrive against a forecast, Minus Consumed usually models reality better.
  • Reading raw inputs instead of gross requirements. The rule shows its effect in the combined gross requirement row, not the separate forecast and firm columns.
  • Setting it once for all products. Different items can behave differently. Choose per product.

Next Steps

To see the requirements the rule feeds, read how to see net requirements for a product. To check the resulting projected stock, use how to check projected stock for a part. The platform overview is at EDGEBIC, and more recipes are in the EDGEBIC how-to hub.

Expert Q&A: Deep Dive

Q: We forecast 200 units for a week and then a customer places a firm order for 120. Are we now planning for 320?

A: It depends on the rule. Under Greater Of, the week uses the larger of 200 forecast and 120 firm, which is 200, so you plan for 200, not 320. Under Minus Consumed, the 120 firm order consumes 120 of the forecast first, leaving 80 of forecast, and total demand stays at 200. Either way you avoid the 320 double-count. The difference shows when firm exceeds forecast: Minus Consumed then plans the firm number, while Greater Of also plans the firm number, so they converge there.

Q: Our orders keep landing against forecast and the plan looks inflated. Which rule fixes that?

A: Switch the product to Minus Consumed. That rule treats a firm order as eating into the forecast you already had, so the incoming order does not add on top of the forecast for the same period. Greater Of would only take the larger of the two, which is fine, but Minus Consumed is the truer model once real orders are arriving against a plan. Set it on the product, save, and re-open the inventory projection to confirm gross requirements no longer stack forecast and firm together.

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