Inventory commitment date calculationLN determines the inventory commitment date based on the planned delivery date and the total inbound lead time or the total outbound lead time. If the total inbound lead time exceeds the total outbound lead time, LN calculates the inventory commitment date with the following formula: inventory commitment date = planned delivery date - total inbound lead time. If the total outbound lead time exceeds the total inbound lead time, LN calculates the inventory commitment date with the following formula: inventory commitment date = planned delivery date - total outbound lead time Inbound lead time determination The total inbound lead time is the total time needed to acquire the item. For purchased items the total inbound lead time is the sum of the following:
For manufactured items the total inbound lead time is the sum of the following:
Outbound lead time determination The total outbound lead time is the sum of the following:
Lead time sources
Calendar sources When LN offsets the different lead times to calculate the inventory commitment date, LN takes into account the calendars that are related to the lead times. The following table shows the calendars used.
Inventory commitment date for sales orders In case of a purchased item, LN calculates the total inbound lead time for sales orders as follows: total inbound lead time = commitment lead time factor * total inbound lead time for purchased item + commitment lead time constant In case of a manufactured item, LN calculates the total inbound lead time for sales orders as follows: total inbound lead time = commitment lead time factor * total inbound lead time for manufactured item + commitment lead time constant LN calculates the total outbound lead time for sales orders as follows: total outbound lead time = commitment lead time factor * total outbound lead time + commitment lead time constant Inventory commitment date for service orders In case of a purchased item, LN calculates the total inbound lead time for service orders as follows: total inbound lead time = total inbound lead time for purchased item + planning horizon in days In case of a manufactured item, LN calculates the total inbound lead time for service orders as follows: total inbound lead time = total inbound lead time for manufactured item + planning horizon in days LN calculates the total outbound lead time for service orders as follows: total outbound lead time = total outbound lead time + planning horizon in days
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