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The Kroger Company uses computer-assisted
replenishment at both the warehouse and store levels. Our
computers calculate the correct order point based on consumer
demand to have the right inventory at the right time for our
customers. The system will review sales history on a daily
basis to identify trends as well as using seasonal sales
patterns to forecast rates of sale and constantly adjusts the
order to meet consumer demand.
Products managed on a computer-assisted
replenishment program automatically generate forecasts of data
as the replenishment is constantly calculating the average rate
of sale. These forecasts are sent via EDI to suppliers capable
of receiving the 830 document.
The 830 forecast is the projected sales, by
week, for the time-period agreed upon by the replenishment
analyst and the vendor. This time-period cannot be greater than
52 weeks. The forecasted quantity in the FST01 segment is a
result of the following formula:
Average Rate of Sales X Base
Index = Forecasted Quantity
Base Index is the numeric form of a profile
created by the replenishment analyst to have the system
calculate demand and order quantities. The Base Index takes
into account safety stock, the average rate of sales over the
previous 52 weeks, seasonal profiles, and promotional index
accounting for bumps in anticipated sales during promotions.
The result is an index accounting for a weekly base sales
average.
The 830 Forecast as sent to EDI partners is not
a request for delivery. Purchasing requests will only come from
purchase orders. However, EDI partners are encouraged to use
forecast data to plan production schedules, analyze business
trends, and identify opportunities to assist Fred Meyer Stores
with maximizing sales opportunities.
Business Requirements for Forecast |
