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

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, production schedule, purchase order, or distribution order.