Lead Time Offsetting Computations (Oracle Bills of Material Help)


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Lead Time Offsetting Computations

Dynamic lead time offsetting offsets dates in two steps, computing total lead time and offsetting the date by total lead time. Total lead time contains both fixed lead time and the quantity-dependent portion of lead time. Preprocessing lead time is also included for discrete items.

To compute the total lead time for discrete items use the following equation:

Compute the total lead time for repetitive items using the following equation:

Offset the date by total lead time using the following equation:

Attention: Oracle Manufacturing offsets the requirement date by the total lead time using the workday calendar, accounting for any non-workdays. Before subtracting total lead time, Oracle Manufacturing determines the workday for the requirement date. After offsetting by total lead time, the calendar date is derived from the starting workday.

Example

Master Scheduling/MRP uses dynamic lead time offsetting to compute a planned order release date. Master Scheduling/MRP computes total lead time and then uses the workday calendar to calculate the planned order release date.

Suppose your MRP plan produced a requirement for 100 discretely manufactured assemblies on March 12 and the following information exists for that assembly:

Requirement date = 12-MAR

Fixed lead time = 2 days

Variable lead time = .05 days (1 day per 20 units)

Preprocessing lead time = 0 days

Order quantity = 100

Master Scheduling/MRP first computes the total lead time as follows:

Suppose your organization's workday calendar has a workday pattern with five days on and two days off. Workdays 1 - 5 are March 1 - 5. Saturday and Sunday, March 6 and 7, are off. Workdays 6 - 10 are March 8 - 12.

Master Scheduling/MRP then calculates the planned order release date as follows:

Convert planned order requirement date to a workday (using your organization's workday calendar).

Finally, determine the start date.

Lead Time Offsetting Computations

Example

See Also