Forecast Requirements
Fred Meyer Non Food / Jewelry Group
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
Technical Requirements of Forecast
