Business Terms Dictionary

Red Zone Base

The portion of the Red Zone in a DDMRP buffer that is determined by lead-time factors, ensuring that sufficient stock is available to cover demand during replenishment lead time. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


The Red Zone Base represents the minimum necessary inventory level required to maintain flow and prevent shortages.


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Properly sizing the Red Zone Base is crucial to ensuring demand-driven replenishment. ForgeFlow Cloud ERP calculates this value using Plazos de entregafactors, ensuring that your búferes are set dynamically based on actual supply conditions. This prevents stockouts while avoiding excess inventory, keeping your supply chain agile and responsive.