Pegging

Pegging is a technique in which a DRP system traces demand for a product by date, quantity, and warehouse location. By mapping out these demands, the system can better forecast future needs and optimize inventory levels to minimize stock-outs and maximize customer satisfaction.

In the context of logistics, pegging can be used to track and manage inventory levels across a supply chain. By understanding where and when products are being demanded, businesses can better forecast future needs and optimize their stock levels to minimize stock-outs and maximize customer satisfaction.

Pegging can also be used to monitor and manage production levels. By understanding which products are in high demand, businesses can better allocate their resources to meet customer demand. This can help minimize production delays and ensure that customers receive the products they need in a timely manner.

Overall, pegging is a powerful tool that can be used to improve forecasting, optimize inventory levels, and streamline production. By understanding demand patterns, businesses can make better decisions about how to allocate their resources to meet customer needs.

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