Lead-time offsetting

For lead-time offsetting, three dates are important:

  • Start Date
    The date a production order is started, or the material of a purchase order is ordered.
  • Finish Date
    The date a production order is finished, or the material of a purchase order is received.
  • Finish Date > Requirement Date
    The date a specific material or item is required for an order.

The required material/item can be ordered through a purchase order, or it can be the result of a production order. The requirement date of a material can be equal to the start date of a production order, or can be later than the start date.

Sequence of orders, with start dates, finish date, and requirement dates
Sequence of orders, with start dates, finish date, and requirement dates

During the order-planning run in Enterprise Planning, in the Generate Order Planning (cprrp1210m000) session, orders are planned backwards based on the requirement date.

On plan-item level, the default supply source and the sourcing strategies determine the type of order that is created: production order, purchase order, or distribution order.

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