Navigate to: Settings > Configuration > Orders
Definition
Definition
Specifies how demand beyond the projected forecast period will be estimated. The app calculates this extended demand using the average demand over the last X months, where X is the number of months defined in this setting.
Use case
Use case
Set this parameter based on how stable or dynamic your forecasts need to be:
12 months: Provides a more stable forecast by averaging over a longer period.
3 months: Produces a more responsive forecast that adapts quickly to recent changes.
💡 Tip: For highly seasonal businesses, set this parameter to 12 months for a more accurate seasonal average.
If a longer planning horizon sounds useful, refer to the Extended Planning Horizon Feature article for more details.
Explanation
Explanation
Suppose the Extended Planning Horizon module is not enabled and the forecast horizon is 12 months. An item has:
Lead time: 9 months
Safety stock: 3 months
Replenishment cycle: 3 months
Because the total cover forward period (lead time + safety stock + replenishment cycle) exceeds the 12-month forecast horizon, the app must estimate demand beyond that horizon.
This setting determines which months will be averaged to calculate the forecast beyond the horizon:
Value: 3 months – Uses the average demand from the last 3 months.
Value: 6 months – Uses the average demand from the last 6 months.
Value: 9 months – Uses the average demand from the last 9 months.
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