Business Terms Dictionary

Net Flow Position

A supply chain metric used in Demand Driven Material Requirements Planning (DDMRP) to determine the availability of inventory relative to demand. It is the position yielded by the Net Flow Equation against a part's Planning Buffer values. © Copyright 2025 Demand Driven Institute. Used with permission.

How is it obtained?


It is calculated by using the Net Flow Equation as:

Net Flow Position = On-Hand Inventory + Open Supply − Qualified Demand



What is it used for?


This value helps assess whether an item is sufficiently stocked, needs replenishment, or is overstocked, guiding inventory and production decisions.


Icon

Struggling to keep optimal stock levels without overstocking or shortages? ForgeFlow Cloud ERP with its DDMRP system helps you dynamically manage your Net Flow Position, ensuring you replenish only when needed. Our real-time inventory tracking and demand-driven approach optimize your supply chain, reducing waste and improving service levels.

 Learn more