What It Does
The Order Coverage policy is a new option in the Supply Planner. It changes how order quantities are calculated when inventory drops below the reorder point:- Instead of using fixed quantity rules, it calculates the sum of forecasted demand over the next X months, defined by the order_coverage_period (Order Lookahead Period) parameter in the Masterdata.
Considerations
1. Forecast-Driven Logic
The policy relies entirely on forecast data.
If any months within the coverage period are missing forecasts, those are treated as zero demand.
This can lead to under-ordering and may trigger additional orders earlier than expected.
Tip: Always ensure forecast data is complete for the full coverage period.
2. Use with buy_frequency
You can use this policy with a buy_frequency setting (e.g., ordering only every 2 months).
However, this limits when the system can place orders, which can lead to stockouts if:
Demand spikes after an order is placed.
Actual demand exceeds the forecast.
Recommendation: For most cases, keep buy_frequency = 1 (monthly) to stay flexible.
3. Safety Stock and Order Timing
The timing between orders may vary based on:
Initial inventory levels
Dynamic safety stock
Even with the same settings, different starting inventory can result in orders being placed at different times.
This is expected and reflects how the system checks inventory against forecasted demand and safety stock at each review point.
Summary Best Practices
Use with complete and up-to-date forecast data
Keep buy_frequency = 1 unless strict ordering cycles are needed
Tune safety stock levels carefully per product
Understand that variation in initial inventory will affect order timing
Any updates to demand would require re-running the simulation.