Business Terms Dictionary

Order Spike Threshold

A defined amount used to identify and qualify order spikes when combined with an Order Spike Horizon. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


Typically expressed as a percentage of the red zone (or minimum value) of a part’s búfer , the Order Spike Threshold sets the threshold at which an order spike inside the horizon is considered significant enough to warrant replenishment action. This ensures that only meaningful fluctuations in demand are addressed, preventing unnecessary inventory adjustments.


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Setting the right Order Spike Threshold is crucial to avoid reacting to minor demand fluctuations. With ForgeFlow Cloud ERP, you can customize this threshold as a percentage of your part's red zone buffer, ensuring that only genuine order spikes trigger replenishment. This keeps your inventory levels balanced and responsive to actual changes in demand.

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