Demand Time Fences
Instead of using forecasts for long term planning, demand time fences refine short range planning by using sales orders instead of forecast sales. Examining sales can provide more accurate data for short-term planning purposes.
A Demand Time Fence represents a point in time, or boundary, within 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.
Did you know that the NetSuite Supply Planning (MRP) solution replaces Time-Phased Planning, with more features and better performance?
New customers should use the new Supply Planning (MRP) solution. Existing customers should develop a plan to move from Time-Phased Planning to the new solution.
For example, to plan for your supply of an item needed right away, make your plan more accurate. Calculate demand based on the orders that are already entered. Existing orders show real-time demand instead of a forecast estimation. To plan the supply needed based on item orders instead of forecast estimations, set up a time fence for that item. Then, when orders are entered within the time fence, NetSuite knows to make demand calculations based on item orders.
When NetSuite runs the supply planning process, the calculation of demand respects demand time fences for items. The demand time fence is time frame of days relative days from the start date of the process. Based on the item record and preferences set, NetSuite determines if a demand time fence applies.
Then, NetSuite establishes demand for planning based on the following criteria:
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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).
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Outside the time fence, NetSuite uses the setting from the demand source.
Days outside the time fence are calculated as being greater than (start date + demand time fence).
For time fences, the start date is determined as follows:
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Expected ship date (for sales orders and transfer orders)
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Production end date (for work orders)
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You should use item lead times as a guide when setting up time fences to make supply planning as accurate as possible. 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.