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Purchasing items have no cumulative manufacturing lead time.
Bills of Material uses the following formula to compute cumulative manufacturing lead time:
Bills of Material calculates cumulative total lead time using the following equation:
For example, suppose Item A is made up of B, C, and D. B, C, and D are used at operations 20, 30, and 40 respectively and the manufacturing (processing) lead time for A (for the lead time lot size) equals 10. The following table illustrates the component, offset days, and lead time percent for each component:
Component | Cum. Mfg. Lead Time. | Op Seq. | Lead Time Percent | Offset Days | Cum Mfg. Lead Time - Offset Days |
---|---|---|---|---|---|
B | 15 | 20 | 20 | 2 | 13 |
C | 20 | 30 | 40 | 4 | 16 |
D | 22 | 40 | 80 | 8 | 14 |
Table 4 - 33. Cumulative Manufacturing Lead Time |
Bills of Material calculates cumulative manufacturing lead time as follows:
And, the following table illustrates the cumulative total lead times assigned to components B, C, and D:
Component | Cum. Total Lead Time. | Op Seq. | Lead Time Percent | Offset Days | Cum Total Lead Time - Offset Days |
---|---|---|---|---|---|
B | 19 | 20 | 20 | 2 | 17 |
C | 20 | 30 | 40 | 4 | 16 |
D | 23 | 40 | 80 | 8 | 15 |
Table 4 - 34. Cumulative Total Lead Time |
Bills of Material calculates cumulative total lead time for A as follows:
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