Product Replenishment Setup - Lead Time overview

Product > Setup > Replenishment

Use this page to define parameters for vendors and warehouses that are used for overriding lead time. A min/max setting, based upon the vendor or warehouse ARP, is used.

This view contains three sections:

  • Minimum/Maximum Lead Time Override
  • Lead Time Average Calculation
  • Lead Time Percentage Exception

Minimum/Maximum Lead Time Override

This group of parameters is used to determine if the average lead time stored in Product Warehouse Product Setup - Ordering:

  • falls below a specified minimum
  • exceeds a specified maximum for orders with either a vendor or warehouse ARP.

If it does, the default days in this section are used. These parameters are applied during Product Administration Month End Processing when you are updating ordering controls. The lead time used to calculate safety allowance is overridden based on these defaults. The average lead time in Product Warehouse Product Setup - Ordering is updated, as long as the Lead Time Frozen Code is not 1-999.

Establish settings for minimum and maximum lead time at the company level for all products. Set up any exceptions to those norms at the vendor or product line level. All fields in the Minimum/Maximum Lead Time Override section must be filled in. If any are blank, no overrides occur.

Lead Time Average Calculation

The last two receipts are used to calculate average lead time. The parameters in the Lead Time Average Calculation section can be used to override this.

You can define how many:

  • receipts to use in determining the lead time average
  • months to review to obtain the specified number of receipts

Purchase order receipts with the Ignore Lead Time option selected are not considered in this calculation.

Lead Time Percentage Exception

The Lead Time Percentage Exception parameters define when a lead time review should be performed. They include a minimum and maximum percentage that is compared during Purchase Receipt of Inventory Entry as each receipt is processed. Lead time for each receipt is stored on the purchase order line record. If the current receipt’s lead time falls outside of the min/max range entered here, an exception is generated.

Review Lead Time Review exceptions in Product Exception Processing Administration on a daily basis.

To check the minimum lead time, the lead time average is multiplied by the value specified in the Minimum Lead Time Percentage field. Lead time maximum is verified by multiplying the average lead time by the Maximum Lead Time Percentage.

Example

Assume these values:

Current Lead Time Average: 10

Current Receipt’s Lead Time: 22

Minimum Lead Time Percent: 50%

Maximum Lead Time Percent: 150%

Minimum Lead Time = Lead Time Average * Lead Time Min %

10 * 50% = 5

Maximum Lead Time = Lead Time Average * Lead Time Max %

10 * 150% = 15

The current receipt’s lead time of 22 is greater than the maximum lead time of 15.

A Lead Time Review exception is generated, and you can view it in Product Exception Processing Administration. The exception shows the last five receipts so you can review lead times and receipt dates in addition to the current receipt. If there are less than five, but more than one receipt, then only those receipts are shown.

When a Lead Time Review exception is created for a purchase order receipt, the Ignore Lead Time option on the receipt is automatically selected.