In the context of supply planning, what is a gating order?

A gating order refers to an order that is withheld due to various constraints present within the supply planning system. This could involve limitations related to resources, capacity, materials, or other factors that prevent the order from being fulfilled immediately. Essentially, gating orders serve as a mechanism to manage and control the flow of orders based on current capabilities and constraints, ensuring that the supply chain operates effectively within its constraints.

In supply planning, understanding the nature of gating orders is crucial, as it helps planners identify which orders can be processed and which need to be held back until the necessary conditions improve. This distinction assists in optimizing order fulfillment processes and overall supply chain efficiency.

The focus on constraints in the definition of gating orders is key, as it helps organizations prioritize which orders should be pushed forward and which may need to wait, allowing them to manage their resources wisely and maintain service levels in line with business objectives.