4.2 Item Lead Time Attributes
Item lead time information is stored in item attributes. Lead times are always maintained in number of days, if it less than a day then it is divided by 24hrs.
Below are the different attributes/elements of item lead time.
Pre-processing lead time: Time required to release a purchased order for buy item and it is time required to release a work order for manufacturing
Processing lead time: Time required to manufacture an item for make items and it is time required to receive goods since purchase order is issued to Supplier. This time is defined for a lot size, if this time proportional to quantity then lot size can be ‘1’, if it is proportional to a batch/lot size then the same can be entered. Usually this lead time can be calculated for manufacturing/make items based on operations routing/resource information.
Post-processing lead time: For buy items this is the time required from the date of receiving to till onhand is available in inventory for consumption. Post processing lead time for manufacturing lead time aren’t considered, if you have any inspection/approval process after manufacturing then include in the routing. This time is manually entered/or loaded through conversion process from a flat file and it is calculated.
Lead Time Lot Size: This is the attribute information used for processing lead times.
Fixed Lead Time: Fixed lead time that is independent of quantity you manufacture. This lead time can be calculated automatically.
Variable Lead Time: This is the lead time that is dependent on order quantity.
Cumulative manufacturing lead time: Total time required to manufacture if all sub-assemblies/components required to manufacture are available on hand.
Total lead time: Total lead time calculated by adding fixed lead time and variable lead time (after multiplying with order quantity).
Cumulative total lead time: Total lead time required procure or manufacture all levels of an assembly.
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