The planning process time-phases material requirements and expresses future demand, supply, and inventories by time period. Time-phasing delays release of orders for components until they are needed and offsets the requirements by item lead time (lead time offset). Oracle Master Scheduling/MRP and Supply Chain Planning plans to the exact date of demand, although some reports and inquiries show requirements bucketed by weeks or months.
If you execute the planning process on a non-valid workday, the planning process considers the next valid workday as the day the plan is generated.
For example, if you execute the planning process on a Saturday, the planning process would generate planned orders at the earliest for the following Monday.
The planning process considers past due supply and demand as if it were due today (in other words, the start date of the plan). Reports and on-line inquiries that bucket demand in weeks or periods show past due demand in the first bucket.
Material Scheduling Method
The material scheduling method controls how the planning process calculates the exact date of demand: the start date of the operation generating the demand, or the start date of the order generating the demand.
For each material requirement, the planning process schedules material to arrive in inventory on the day that corresponds to the method you choose. This affects time-phasing of requirements for discrete jobs, repetitive schedules and planned orders. See: Material Scheduling Method Example.
Lead Time Percent
Lead time percent is used when you choose a material scheduling method of Operation start date when launching the planning process.
For a particular operation, the lead time percent is the percent of total lead time from the start of the first operation on the routing to the start of the current operation.
For example, if the lead time of the assembly equals 10 days and this operation starts after 2 days (on day 3) the lead time percent is 20%.
- Oracle Bills of Material calculates lead time percent values when you calculate manufacturing lead times.
- Oracle Master Scheduling/MRP and Supply Chain Planning uses the lead time percent to schedule material requirements at a particular operation.
- Oracle Capacity uses the lead time percentage to plan capacity requirements at a particular operation.
Manufacturing Lead Time Calculation
You calculate the processing lead times for assemblies in Oracle Bills of Material. For a particular assembly, the processing lead time is the sum of the operation lead times for the standard routing of the assembly. See: Calculating Manufacturing Lead Times.
Dynamic Lead Time Calculations
Oracle Bills of Material calculates fixed and variable portions of lead time for your manufactured items. You can use dynamic lead times to accurately compute start dates for planned orders generated by Oracle Master Scheduling/MRP and Supply Chain Planning. Dynamic lead times are more accurate than fixed lead times because lead time can vary based on order quantity.
Lead time for planned orders is computed as:
Overview of Capacity
Defining Planning Parameters
Launch Planning Process
Item Lead Time Attributes
Manufacturing Lead Time Computation
Overview of Lead Time Management
Dynamic Lead Time Offsetting