Business Terms Dictionary

Relative Priority

Relative Priority refers to the order of precedence given to different orders based on zone color (a general reference to urgency) and buffer penetration (a more specific reference to how far an order has penetrated its inventory buffer). It helps determine which orders should be prioritized for fulfillment or production. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


This concept is used to prioritize orders based on urgency and criticality. By considering both the zone color (such as green, yellow, or red) and buffer penetration, businesses can ensure that the most critical or time-sensitive orders are fulfilled first, optimizing supply chain efficiency.


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In ForgeFlow Cloud ERP, Relative Priority is seamlessly integrated within the DDMRP system. The platform automatically calculates and assigns priorities based on real-time buffer data and urgency, ensuring that resources are allocated to the most critical orders first and maintaining smooth operations.
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