Example: cumulative order lead time (COLT)LN uses COLT values to calculate the minimum length of the order horizon and the planning horizon:
This topic explains both the cumulative order lead time (COLT) and the noncritical COLT. Noncritical cumulative order lead time The noncritical cumulative order lead time (noncritical COLT) of an item is equal to the longest of the following lead times:
The reason why it can be necessary to compute a noncritical COLT is as follows. Suppose that a particular item has the following planning horizon:
In this case, order planning is used to cover short-term requirements, while master planning covers long-term requirements. As long as requirement X falls within the master-planning horizon, this requirement is exploded to the item's critical components only. Explosion to noncritical components only takes place after the requirement has shifted into the item's order horizon. When that takes place, the total lead time for the item and its noncritical components must still fit within the order horizon: otherwise, the order will be delivered late. Rules For items that are critical in master planning (see the Items - Planning (cprpd1100m000) session) and that have an item master plan, the following rules apply:
For items that are critical in master planning (see the Items - Planning (cprpd1100m000) session) and that have no item master plan, the following rules apply:
For items that are not critical in master planning (see the Items - Planning (cprpd1100m000) session), the following rules apply:
Moreover, the following rule also applies to noncritical items:
For more information on this rule, see To synchronize order horizons between BOM levels. Cumulative order lead time Item A is manufactured from components X, Y, and Z. Components X and Y are purchased from a business partner. Component Z is manufactured from subcomponents Z-1 and Z-2. Subcomponents Z-1 and Z-2 are purchased from a business partner.
The lead times include safety time, extra lead time, and outbound time. The COLT of item Z is 10 days (1 + 9). The COLT of item A is 12 days (2 + 10). Now, suppose that the item can also be purchased, and that the supply time in the Items - Purchase (tdipu0101m000) session is 21 days. This is converted to 15 working days. In this case, item A's COLT will be 15 days instead of 12.
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