What is automatic allocation based on in the demand time fence (DTF)?

In the context of Infor M3 and the concept of a demand time fence (DTF), automatic allocation primarily focuses on medium volumes and standard products. This approach ensures that the allocation process is efficient and systematic, addressing orders that reflect predictable demand patterns during defined time periods.

Standard products are typically easier to manage and forecast, enabling organizations to allocate inventory more effectively, especially when customer orders fall within a certain timeframe. By concentrating on medium volumes of these standard items, businesses can maintain a streamlined operation, allowing for quicker responses to customer needs without the complexities involved in handling numerous variables associated with custom or low-volume products.

This method stands out because it allows for a more strategic allocation of resources. By ensuring that the processes account for medium-volume, standard products, companies can optimize their warehousing and inventory management, effectively minimizing the chances of stockouts and overstock situations. The focus on standard products also contributes to a more predictable supply chain, allowing for better planning and management of inventory levels in relation to anticipated demand.