Order Lead Time Offsetting
Lead time offsetting refers to a technique in which a planned order receipt in one time period requires the release of that order in an earlier period. The exact moment that the order must be released depends on the lead time for the item.
The length of the order lead time is calculated backwards, from the requirement date to the start date of the order.
The offsetting can be divided into these parts:
- From the requirements date to the finish date of the order (part 1)
- From the finish date to the start date of the order (part 2)
| Part 1 | Offsetting from the requirements date to the finish date, is the same for all order types. For more information, refer to Offsetting from requirements date to finish date. |
| Part 2 | Offsetting from the finish date to the start date, depends on the order type. This part of offsetting differs for production orders, purchase orders, and distribution orders. For more information, refer to Offsetting From Finish Date To Start Date. |