Inputs and planning rule
Use the same day basis for demand and lead time, and one count unit for all stock quantities. The supplied threshold is demand×lead time+buffer. Planning position is usable on-hand+eligible on-order−backlog; this local policy triggers at or below the threshold. Backlog is excluded from future daily demand. Eligible on-order units remain unreceived stock.
Worked example
| Daily units | Lead days | Buffer | On-hand | On-order | Backlog | Threshold | Position |
|---|---|---|---|---|---|---|---|
| 12 | 5 | 20 | 70 | 30 | 20 | 80 | 80 |
Does equality trigger? What if backlog rises to 120?
Show the worked answer
Equality triggers:12×5+20=80 and 70+30−20=80. Backlog 120 gives position −20 and a 20-unit deficit; retain the deficit instead of replacing it with zero.
When the result is held
Unknown rates, lead times, buffers or eligible orders are held. Zero demand shows the supplied threshold comparison but no demand-led trigger conclusion. Zero lead time does not prove immediate delivery. Raw negative values are invalid; computed negative position is a reported deficit. Rates have at most two decimals; other fields use whole units, all no larger than 1,000,000. No order quantity or service probability is inferred.