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Forecast Netting
Reconciling expected demand (forecast) against actual, realized demand to arrive at a net forecast. The demand that the planning system expects is reduced in light of the fact that a certain portion of that forecasted demand has happened. Simple forecast netting provides a net forecast in a particular slice against demand that has occurred during that slice:Netted Forecast = max [ (Forecast - Demand), 0]. For example, if the forecast for a time slice is 100 parts and there are confirmed orders for 20, the net forecast equals 80 remaining parts.
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