Quick Summary: The Ordering Policy Panel appears on recommended order schedules for each item. It provides a concise visual snapshot of the core indicators that drive ordering behavior.
For necessary background, please preread Understanding Order Creation and Review and The Recommended Order Quantity (ROQ) Calculation Explained before proceeding with this article.
The Policy Bar Explained
The policy bar visually breaks the ordering policy into three components:
The green section represents the Lead Time.
The olive section represents the Safety Stock.
The purple section represents the Replenishment Cycle.
➜ For more on this topic, read: Cover Forward Period Explained
On Hand and On Order Visuals
Two additional indicators are overlaid on the policy panel:
The dark plum bar represents Stock on Hand and shows how long it is expected to last in days.
The olive bar represents Stock on Order and shows how long incoming stock is expected to last.
If the dark plum and olive bars overlap, no stockout is expected. Incoming stock will arrive before existing stock is fully consumed.
If the dark plum bar is not present, there is no stock on hand, and the item is currently stocked out.
⚠️ Watchouts
Outdated data assumptions: The panel reflects the inputs used at order creation. If stock, forecasts, or policies have changed since, the visual may no longer represent current reality.
💡 Tips
Use the panel as a sense check: The policy bar is a fast way to confirm that the ROQ aligns with expected coverage before reviewing detailed calculations.
Validate timing, not just quantity: Focus on whether stock and incoming orders cover demand through Lead Time and into the Replenishment Cycle.
Cross check with the Projection tab: When timing looks tight or unclear, the Projection tab provides day by day confirmation of stock behavior.
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