What is the difference between ‘Demand Source’ on ...
# demandplanning
b
What is the difference between ‘Demand Source’ on the Item record vs ‘Projection Method’ on the Calculate Demand Plan page? It appears that they both have similar options (Orders and Forecast VS Sales Forecast. Moving Average, etc..)
r
Hi @Brian Think of this in two buckets: Demand Planning & Supply Planning: Demand Planning will be used for defining the demand for your Finished Goods typically - this is the Demand Planning Page and is determined by the Projection Method based on historical or forward looking transactions for the baseline then modified by the team. Or it could be determined by an outside system then imported to NetSuite since the NS tool is very basic. Supply Planning will take that demand and translate it into Supply Orders (Work Orders, Transfer Orders, or Purchase Orders). The selection on the item master (Demand Source) is basically "What do I want to consider to create my supply orders?" Example: I solely use Moving Average to determine my demand for Finished Good A, my Demand Source is Demand Forecast. I then have subassemblies 1 & 2 that I only manufacture in a just-in-time basis, so I set that to Entered & Planned Orders so that when I run the Supply Planning (or MRP) tool it considers the Lot Sizing Method and the "planned orders" the tool is creating and flowing it through the BOMs.