Business Terms Dictionary

Top of Red (TOR)

The upper limit of the Red Zone in a DDMRP buffer. This level represents the total Red Zone quantity, including both Red Zone Base (lead-time coverage) and Red Zone Safety (variability protection). © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


The Top of Red (TOR) defines the lower boundary of the Yellow Zone. In terms of planning, if the Net Flow Position (NFP) reaches or falls below the TOR, it signals a critical situation—demand is depleting available stock, and necessary replenishment orders were not placed when the NFP dropped below the Top of Yellow (TOY). This means there is insufficient incoming material, potentially disrupting supply continuity.


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Running out of stock can disrupt production and customer deliveries. ForgeFlow Cloud ERP ensures that the NFP stays above the Top of Red (TOR) threshold by dynamically adjusting buffers based on demand and supply variability and emitting replenishment recommendations. This prevents shortages while avoiding overstocking, keeping your operations smooth and responsive to real demand.
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