Business Terms Dictionary

Top of Green (TOG)

The upper limit of the Green Zone in a DDMRP buffer, calculated as the sum of the Red, Yellow, and Green Zones. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


The Top of Green (TOG) represents the maximum inventory target for a part, preventing excess stock while ensuring a smooth material flow. When the Net Flow Position (NFP) goes under the Top of Yellow in a Planning Buffer, a replenishment order is triggered to restore the NFP to the Top of Green, maintaining optimal inventory levels.


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Excess inventory ties up working capital and increases carrying costs. ForgeFlow Cloud ERP ensures that inventory stays within optimal limits by managing buffers dynamically. With TOG as the upper threshold, the system prevents overstocking while maintaining a steady supply flow, ensuring your supply chain remains lean and efficient.

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