SUPPLY-DEMAND PLANNING LINKS

Pegging

Also called

Reading time
3 minutes

Pegging links supply with the demand that creates or uses it in a planning system. It helps explain which requirements relate to inventory, purchase, production or planned supply records.

PEGGING IN PRACTICE

  1. Identify the demandLocate the order or requirement being explained.
  2. Trace the supplyReview linked receipts, stock or production.
  3. Review the effectCheck how changes alter commitments.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

A plan can explain demand without reserving a pallet.

A planner traces a customer requirement to proposed production and component supply. The team separately checks whether any actual inventory has been reserved and whether the proposed dates are feasible.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

A LITTLE MORE CONTEXT

Questions about Pegging

Is pegging always a physical reservation?

No.

Can it link demand to proposed supply?

Yes.

Should system-specific behavior be checked?

Yes.

Source & example notes

Oracle: supply and demand information.

Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 23 October 2026.

Last updated: · 3PL Hub

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