Quick Summary: Firm Demand in Lead Time represents confirmed demand that falls within the supplier lead time window. It is used only for non-stocked items to calculate back-to-back purchase quantities.
When Firm Demand in Lead Time Is Used
Firm Demand in Lead Time behaves differently depending on the stocking indicator.
Stocked items
For stocked items:
Firm Demand in Lead Time is not displayed
Firm Demand in Lead Time is not used in order calculations
Stocked items use forecast-based demand, policy levels, safety stock, and replenishment cycles to determine order quantities. Customer orders and BOM demand are incorporated into the demand modeling process rather than handled separately.
Non-stocked items
For non-stocked items:
Firm Demand in Lead Time is calculated and displayed
Firm Demand in Lead Time directly drives purchase order quantities
Because non-stocked items do not use forecast-driven stock levels, the system uses confirmed demand inside the lead time window to determine how much to order.
What Is Included in Firm Demand in Lead Time
For non-stocked items, Firm Demand in Lead Time includes:
Customer orders due within lead time
BOM demand due within lead time
CW demand where applicable
Forecast demand is not included.
How It Affects Ordering
For non-stocked items, the system orders enough quantity to return Net Stock to zero.
If Firm Demand in Lead Time exceeds available stock and open orders, the recommended purchase quantity matches the shortfall required to cover that demand, incorporating any supplier contraints.
➜ For more on this topic, read: The Recommended Order Quantity (ROQ) Calculation Explained and Supplier Constraints Explained
⚠️ Watchouts
Only applies to non-stocked items: Firm Demand in Lead Time will not appear or apply to stocked item replenishment logic.
Not a forecast value: Firm Demand in Lead Time reflects confirmed demand only and should not be interpreted as future expected sales volume.
💡 Tips
Investigate dependent demand sources: Use the DC tab on the Item Inquiry screen to review downstream location demand and the BOM tab to validate component-driven demand contributing to Firm Demand in Lead Time.
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