1. SCM (Supply Chain Management)
  2. Inventory Management
  3. Advanced Inventory Management
  4. Demand Planning
  5. Setting Up Demand Planning
  6. Time Fences
  7. Demand Time Fences

Demand Time Fences

Instead of using forecasts for long-term planning, demand time fences use sales orders for short-term planning. Looking at sales orders can give more accurate data for short-term planning.

A Demand Time Fence is a point in time, or boundary, in the master schedule when the forecast is no longer included in total demand and projected available inventory calculations. Within this point, only customer orders are considered.

Important:

The NetSuite Supply Planning (MRP) solution replaces Time-Phased Planning and offers more features and better performance.

New customers should use the Supply Planning (MRP) solution. Existing customers should plan to move from Time-Phased Planning to MRP.

For example, if you need to plan for an item right away, make your plan more accurate by using existing orders instead of forecasts. Existing orders show real-time demand. To do this, set a time fence for that item. So, when orders are entered within the time fence, NetSuite makes demand calculations based on item orders.

When NetSuite runs the supply planning process, it uses the demand time fences for items. The demand time fence is the number of days from the start date of the process. NetSuite checks the item record and preferences to see if a demand time fence applies.

Then, NetSuite sets demand for planning based on the following criteria:

  1. Within the time fence, NetSuite always uses actual orders.

    Days within the time fence are calculated as being equal to or less than (start date + demand time fence).

  2. Outside the time fence, NetSuite uses the demand source setting.

    Days outside the time fence are calculated as being greater than (start date + demand time fence).

    For time fences, the start date is based on:

    • Expected ship date (for sales orders and transfer orders)

    • Production end date (for work orders)

You should use item lead times as a guide when setting up time fences to keep supply planning accurate. For more information, see Time Fences on Item Records.

For details about using forecasts and the Demand Source setting for long-term planning, see Demand Planning on Item Records.

Related Topics:

General Notices