What buffer level is targeted for replenishment proposals in a Demand-Driven Replenishment process during MRP?

In a Demand-Driven Replenishment (DDR) process during Material Requirements Planning (MRP), the targeted buffer level for replenishment proposals is at the Top of Green. This represents the highest desirable stock level within a buffer zone that indicates optimal inventory available to meet customer demands effectively without incurring excess stock.

The concept behind the Top of Green is to ensure availability while minimizing waste and tying up capital in inventory. Operating at this level allows sufficient stock to manage fluctuations in demand and maintain service levels, which is a fundamental principle of Demand-Driven planning.

In this context, other buffer levels like Top of Red or Top of Yellow indicate higher levels of risk concerning stockouts or excessive inventory, hence they do not represent the ideal state for orchestrating replenishment activities effectively.