What is it used for?
In Planning Buffers, if the Net Flow Position (NFP) is within the Green Zone, the system does not generate new supply order recommendations, ensuring that stock levels are maintained efficiently without overordering. Likewise, in Execution Buffers, if the inventory on-hand is within its Green zone, no on-hand alerts are emitted and no action is required.
How is it obtained?
In Planning Buffers, the green zone is the heart of the supply order generation process embedded in the buffer. It determines average order frequency and typical order size.
In this case the Green Zone is determined by the highest value among three factors: Average Daily Usage (ADU) × Minimum Order Cycle, Decoupled Lead Time (DLT) × ADU × Lead Time Factor, or Minimum Order Quantity (MOQ). The factor that produces the largest value sets the size of the Green Zone.
In Execution Buffers, it is obtained as the Planning Buffer's Yellow Zone.
Avoiding unnecessary replenishment is just as important as preventing shortages. ForgeFlow Cloud ERP dynamically manages buffers, generating supply order recommendations when the NFP becomes lower than the Top Of Yellow. This helps ensuring remplenishment is performed when needed, reducing carrying costs, and keeping your inventory aligned with real demand, improving overall supply chain efficiency.
Learn More