What is the purpose of a time fence policy?

The purpose of a time fence policy is to control the amount of change during predefined areas of the planning horizon. Time fences are specific points in the planning schedule that delineate periods of flexibility and rigidity in planning activities. Within the flexible time period, changes can be made more easily, allowing the operation to adapt to fluctuations in demand or supply. However, beyond this flexible period, any changes to production schedules or inventory levels become more restricted. This structured approach helps maintain stability in production and inventory levels while also providing the opportunity to adjust plans when necessary, thereby optimizing resource allocation and minimizing disruptions. By having a time fence policy in place, organizations can enhance their planning accuracy and responsiveness without incurring the chaos that can arise from unrestrained changes.