Calculating purchase item lead times

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

• The calculated lead time is displayed in the Calculated Lead Time (Days) field.
• The calculated full lead time is displayed in the Calculated Full Lead Time (Days) field.

Calculating the (full) lead time

1. Calculating 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:

   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.

2. Calculating the lead time in hours

   Using the average available hours for each available day, LN 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).

   The calculation of the transportation time is based on the implementation of Freight, which you can define in the Implemented Software Components (tccom0500m000) session. 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.

   If Freight is implemented, calculation of the transportation time is based on carrier, and routes. Route plans and service levels are not known at this point in time. 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.

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.