What happens when demand falls within the demand time fence?

When demand falls within the demand time fence, the order is automatically allocated. This behavior is defined by the system's parameters regarding inventory handling and order processing. The demand time fence serves as a critical timeframe within which the system has a commitment to meet actual demand forecasts. Because it’s essential to meet the immediate demand, the system prioritizes automatic allocation for efficiency and responsiveness. Automatic allocation helps ensure that the most relevant and up-to-date customer requirements are satisfied without delay, which is particularly important for businesses that need to maintain high service levels.

In contrast, during periods outside of the demand time fence, demand might be treated differently, such as requiring manual allocations or prioritizing future processing, depending on how the business has set up its inventory management practices.