Forecast - Forecast - Maximum growth (%)

Limits the forecast growth in comparison to sales history. This setting works in conjunction with the Reactivity parameter. A “High” reactivity forecast will be limited based on more recent sales, while a “Low” reactivity forecast will be limited based on a longer history.

It is best to set a Maximum growth percentage higher than the Maximum decline percentage. This allows for rapid growth to be recognized, while avoiding an equally rapid decline that could result in stock-outs.

These percentages become especially important when the Reactivity parameter is set to “High.” See the explanation of the Reactivity parameter for more detail.

You should also consider the type of business when determining appropriate limits. The Reactivity and Maximum growth percentage parameters should always be configured together, as one directly influences the other.

💡Tip: Leave these settings at their default values initially. Allow demand planners to forecast as usual, review where forecasts fall short, and adjust these parameters based on those findings.

Imagine an item with sales history showing a consistent growth of 50% each month. Normally, the forecast would follow this trend and continue projecting 50% increases month over month.

If a Maximum growth limit of 35% is applied, the forecast will instead grow more gradually, as shown below:

The images above also assume a Reactivity parameter setting of “High” where the most recent sales carry more weight than those 12 months ago. If our Reactivity parameter setting was “Low”, the forecast would look a lot more like this: