Microsoft Dynamics 365 Blog

Forecast are used to prevent planning of any new demands coming. But, is it meaningful to use forecast with reorder point items? I would say no, just what I think. I am saying this because the reorder point is calculated from the safety stock + average demand during lead time. Thus, the reorder point level intrinsctly have a forecast on what would be the demand (the average). Thus, it is not meaningful to include forecast when reorder point is used

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