CTM - Late demand fullilment Standard Procedure

Hello Gurus,

I have a Purchase order in December 2015 and a demand in August 2015.When i run CTM with standard procedure for late demand fulfillment it is waiting till December to satisfy the demand rather than generating Pur Req in August .

Is this behaviour because when the internal sequence of search strategy says as below.We have no search strategy maintained.

Please correct me if i am wrong .