Calculating Last Period Within Replenishment Lead Time

The tier demands represent the demands within the replenishment lead time from level one (parent location) of a Bill of Distribution (BOD).

Process

For locations on level two of the BOD (potential receiving locations) the last period within the replenishment lead time is known.
To determine the last period inside the replenishment lead time for locations on level three of the BOD, Deployment searches for the last period that rolls up a demand to a period inside the replenishment lead time of the corresponding location on level two of the BOD.
The same method is done recursively to determine the last period inside the replenishment lead time of locations on all lower levels of the BOD. The algorithm branches down to a location on a lower level only if dependent demands are rolled up from the location on the lower level to a period inside the replenishment lead time of the corresponding location on the current level.

Example

This graphic is explained in the accompanying text.

Example of Calculating Last Period Within Replenishment Lead Time

The graphic above illustrates the recursion for a four-level BOD. Locations on levels four and three roll up demands to a period inside replenishment lead time of the corresponding location on the level above, so the algorithm branches down to the locations on level three and four. The periods marked in red are considered as last period within replenishment lead time and are the last periods considered in tier processing.