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Astera Technology

Derive a reorder threshold and compare inventory position

Keep the demand/lead-time threshold separate from current stock and open orders.

Astera Technology

Reorder threshold comparison

Demand and lead time use the same day basis; all stock quantities use the same count unit. The supplied buffer and eligible on-order quantities are assumptions. Backlog is excluded from future daily demand.

Planning inputs

Example result

Threshold and position
MeasureUnits
Demand during lead time60
Buffer20
Threshold80
On-hand70
On-order30
Backlog20
Planning position80
Deficit0
Trigger policy result
ComparisonConclusion
At or below thresholdSupplied rule triggers
Threshold sensitivity with other inputs fixed
Added inputThreshold increase in units
One lead-time day12
One buffer unit1

Exact fractions are retained; ≈ marks a truncated six-place display.

Threshold and planning position in units800Threshold80Position80
Threshold and planning position in units — Negative position remains a deficit

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

Threshold equality example
Daily unitsLead daysBufferOn-handOn-orderBacklogThresholdPosition
125207030208080
Download editable CSV ↓

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.

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