Calculating purchase item lead times

You can specify and calculate several lead times for a combination of purchased item and business partner.

In the Items - Purchase Business Partner (tdipu0110m000) and Purchase Contract Line Logistic Data (tdpur3102m000) sessions:

Calculating the (full) lead time
Step 1. Calculate the average available hours for a day

To calculate the (full) lead time, LN first determines the average number of available hours for each working day based on the workweek for the availability type, which is specified in the Default Availability Type field of the Procurement Parameters (tdpur0100m000) session.

To calculate the average available hours for each available day, LN takes the following steps:

  1. Determines the available hours for each available day, based on the start time and end time.
  2. Calculates the total available hours in a week by adding up the available hours for each day.
  3. Divides the total available hours in a week by the number of available days in a week. This results in the average available hours for each available day.
Step 2. Calculating the lead time in hours

Using the average available hours for each available day, LN next converts the lead time components to hours and calculates the lead time by adding up the following lead time components from the Items - Purchase Business Partner (tdipu0110m000)/ Purchase Contract Line Logistic Data (tdpur3102m000) sessions:

  • Internal processing time
  • Safety time
  • Supply time or full supply time
  • Transportation Time (Days).

    LN retrieves the transportation time in one of the following ways:

    • If Freight is implemented, which you can define in the Implemented Software Components (tccom0500m000) session, calculation of the transportation time is based on carrier, and routes. Route plans and service levels are not known at this point in time.

      LN performs the following steps to retrieve the transportation time.

      1. If the route, the carrier, the origin, and the destination addresses are known, LN first searches for route plans and then for standard routes with matching routes, carriers, and addresses.
      2. If more than one matching route plan or standard route is found, LN selects the route plan or standard route with a transport means group that matches the transport means group of the carrier.
      3. If LN still finds more than one route plan or standard route, route plans have priority over standard routes. If only standard routes are found, the standard route is selected following the settings of the Carrier/LSP Selection Criterion parameter in the Freight Planning Parameters (fmlbd0100m000) session.
      4. If LN still finds more than one route plan, it selects the first one it encounters in the database.
    • If Freight is not implemented, LN takes the transportation time between the ship-from business partner's address and the receiving warehouse's address based on a relevant distance table (if available) from the Distance Table by City (tccom4137s000) or Distance Table by ZIP Code/Postal Code (tccom4138s000) sessions. From which of these sessions the transportation time is retrieved, depends on the value of the Usage Distance Tables field in the COM Parameters (tccom0000s000) session.
Step 3. Calculating the lead time in days

Using the average available hours for each available day, LN converts the calculated lead time from hours into days. If a fraction of a day is left, LN rounds this to a whole day. This results in a calculated lead time that is always expressed in whole days.

Examples
Example- purchase availability type

The purchase availability type is PURAT. The workweek for availability type PURAT is as follows:

DayAvailableStart timeEnd timeAvailable hours
MondayYes8:30:0016:30:008
TuesdayYes8:00:0016:00:008
WednesdayYes9:00:0016:30:007.5
ThursdayYes8:00:0016:30:008.5
FridayYes8:00:0016:00:008

 

Based on the above workweek, a total of 40 hours is available for each week. For each available day, on average eight hours are available, which equates to 40 available hours for each week/five available days for each week.

Using the average of eight available hours for each available day, LN converts the following lead time components into lead times that are expressed in hours.

Lead time componentLead timeLead time in hours
Internal processing time6 hours6 hours
Safety time6 hours6 hours
(Full) supply time1 day8 hours

 

Note

The Transportation Time (Days) is converted by using the Availability Type for Carrying Goods, as entered in the COM Parameters (tccom0000s000) session, instead of the purchase availability type.

Example- availability type for carrying goods

The Availability Type for Carrying Goods is EXPO. The workweek for availability type EXPO is as follows:

DayAvailableStart timeEnd timeAvailable hours
MondayYes8:00:0017:00:009
TuesdayYes8:00:0017:00:009
WednesdayYes9:00:0017:30:008,5
ThursdayYes8:00:0017:30:009.5
FridayYes8:00:0017:00:009

 

Based on the above workweek, a total of 45 hours is available for each week. For each available day, on average nine hours are available, which equates to 45 available hours for each week/five available days for each week.

Using the average of nine available hours for each available day, LN converts the Transportation Time (Days) into a lead time that is expressed in hours.

Lead time componentLead timeLead time in hours
Transportation time2 days18 hours

 

The sum of the Internal Processing Time, Safety Time, and Supply Time is 20 hours. Which is, when converted to days, 2.5 days which equates to a total lead time of 20 hours/eight hours on average available for each available day. Because the calculated lead time is always expressed in whole days, LN rounds the lead time to 3 days. The Transportation Time (Days) is 18 hours. Which is, when converted to days, 2 days which equates to a total lead time of 18 hours/nine hours on average available for each available day. As a result, the Calculated Lead Time (Days) is five.

Note

Each time you open or close the Items - Purchase Business Partner (tdipu0110m000)/ Purchase Contract Line Logistic Data (tdpur3102m000) session, LN (re)calculates the lead times.

Related topics