Core TSIs : Stock : Stock - Concepts : Replenishment window
Replenishment window
Replenishment window (a period, current date + the window) is relative to the current date and is used to determine which stock movements have to be considered in determining whether or not the stock item needs to be replenished.
Replenishment window determines replenishment quantity, based on the demand of the stock item within the organization in order to assure delivery without delays.
The replenishment window can be determined on the basis of the product quantity that arrives at regular intervals versus the product quantity that is issued to the requestors.
The following factors could be considered, while defining the replenishment window:
Minimum stock quantity
Average demand for the product
Delivery time of the supplier
Quantity expected to go into stock due to existing replenishment suggestions and purchase orders (considered during automatic replenishment.)
Quantity expected to go out of stock due to product issues to the requestors (considered during automatic replenishment).
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It is recommended that the replenishment window should always be smaller than the delivery time, if not the replenishment suggestions are created that actually cannot be delivered in time.
For more information, see Replenishment.