1. Using Replenishment Planning
  2. How Lead Time Is Calculated for Buy Orders and Transfer Orders

How Lead Time Is Calculated for Buy Orders and Transfer Orders

During the calculation of policies and replenishment orders, the calculation of the lead time for a buy order is different from that for a transfer order.

These points explain how the lead time is calculated for a buy order:

  • If an assignment set is attached to the replenishment plan, these points apply:
    • The lead time is the total of the preprocessing, processing, and postprocessing lead times and transit time.
    • The preprocessing and postprocessing lead times are taken from the Items table for the item-location combination.
    • The transit time is taken from the sourcing rule or bill of distribution for the item in the assignment set. If no transit time is defined or available, it's considered as zero.
    • The item-supplier processing lead time from the approved supplier list (ASL) is taken as the processing lead time. If the item-supplier processing lead time isn't defined, the processing lead time is taken from the Items table for the item-location combination.
  • If no assignment set is attached to the replenishment plan, the lead time is the total of the preprocessing, processing, and postprocessing lead times for the item-location combination in the Items table.

These points explain how the lead time is calculated for a transfer order:

  • If an assignment set is attached to the replenishment plan, these points apply:
    • The lead time is the total of the preprocessing and postprocessing lead times and transit time.
    • The preprocessing and postprocessing lead times are taken from the Items table for the item-location combination.
    • The transit time is taken from the sourcing rule or bill of distribution for the item in the assignment set. If no transit time is defined or available, it's considered as zero.
  • If no assignment set is attached to the replenishment plan, the lead time is the total of the preprocessing, processing, and postprocessing lead times for the item-location combination in the Items table.

These additional points determine how the lead time for the buy or transfer order is calculated:

  • The transit time is taken from the Rank 1 sourcing rule or bill of distribution with the highest allocation percentage.
  • Only those sourcing rules and bills of distribution that are active as on the replenishment plan's start date are considered.

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