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Overview

MRP Planning uses Lead Time variables to create the material plan. The different Lead Times represent date driven milestones in the supply order process. MRP Planning uses the Lead Times to determine the start of the process and to schedule the incremental steps leading up to the completion of the process. Lead times determine the date activity needs to take place in order to manage the supply plan. These dates are visible to the user and are intended to draw attention to the actions (create and manage work orders, purchase orders) required to manage the supply plan.

NOTE image.png NOTE: Work Order Lead Times effect only Work Order Lead Time calculations. Purchase Order Lead Time plus Vendor Lead Time effect only Purchase Order Lead Time calculations. Work Order Lead Times are managed through Commodity Code / Inventory Item Master. Purchase Order Lead Times are managed through Commodity Code / Inventory Item Master and the Purchase Item Master.

NOTE image.png NOTE: It is important to note that when MRP is planning new supply dates, based on the defined lead time values, it also considers Shop Calendar Days from the Rootstock Shop Calendar, and will not include non-Work Days in the calculation. For example, if a lead time is 7 days and there is a Saturday and Sunday in the 7 days window, the actual date will push 2 extra days because of the Saturday and Sunday. In other words, with Shop Calendar default days values set, a 1 week lead time should be entered as 5 Days

Work Order Lead Times
Work Order Lead Time Settings = Inventory Commodity Code - Inventory Item Master

Work Order Firm Lead Time = Administrative time representing the number of days required to create a Firmed Work Order from an MRP Planned Work Order.
Work Order Release Lead Time = Administrative time representing the number of days required to Release a Work Order from a Firm Work Order.
Work Order Pick Lead Time = The number of days required to Pick the material from the stockroom and stage it for issuing to the manufacturing floor / issuing to a Work Order.
Work Order Shop Floor Lead Time = The number of days required to complete an MRP Planned Order for a standard quantity.

Work Order – Lead Time - Example

Item = XXX
Customer Order Due date = 16 Dec
Work Order Shop Floor Lead Time = 2
Work Order Pick Lead Time = 1
Work Order Release Lead Time = 1
Work Order Firm Lead Time = 1

Thu	Fri	Sat	Sun	Mon	Tue	Wed	Thu	Fri	Sat	Sun	Mon
8 Dec	9 Dec	10 Dec	11 Dec	12 Dec	13 Dec	14 Dec	15 Dec	16 Dec	17 Dec	18 Dec	19 Dec
								Cust Order Due
								Planned WO Due
			LT Type	WO Firm	WO Release	WO Pick	WO Shop	WO Shop
			LT Days	1	1	1	1	2
			LT Cumulative	1	2	3	4	5

MRP Planning creates a planned work order due on 16 Dec to satisfy demand and uses the Work Order Lead Times to back-schedule the activity that must take place to properly manage the planned order.

15 Dec - 16 Dec represent the number of days required to produce the product.
14 Dec is the day the Released Work Order is scheduled to be Picked.
13 Dec is the day the Firmed Work Order is scheduled to be Released to the Shop Floor.
12 Dec is the day the MRP Planned Work Order is scheduled to be changed to a Firmed Work Order.

Purchase Order Lead Times
Lead Time Settings = Inventory Commodity Code - Purchase Order Commodity Code - Purchase Item Master

Purchase Order Requisition Firm Lead Time = Administrative time representing the number of days required to create a Firm Purchase Order from an MRP Planned Purchase Order.
Purchase Order Vendor Ship Days Lead Time = The number of transit days required by the vendor to ship the purchased material to the facility.
Purchase Order Receiving Inspection Lead Time = The number of days required to inspect the material which has been received at the dock. This field is used to calculate the dock date required for the material.
Purchase Order Disassembly Wait Lead Time = This is the lead time representing the number of days that an item to be disassembled waits. It is the days from date of receipt of the disassembly item to the start date of the disassembly work order.
Purchase Order Component Ship Lead Time = The number of days required to pick the component items and ship to the vendor on a subcontract purchase order.
Inter-site Transfer = Purchase Item Master / Lead Time.
Purchase Order Conversion Lead Time = The number of days required to convert the Firmed Purchase Order to an Approved Purchase Order.
Vendor Lead Time = The number of days it takes the vendor to produce the product and have it available to ship.

Purchase Order – Lead Time - Example

Item = YYY
Material Requirement Date = 14 Dec
Purchase Order Receiving Inspection Lead Time = 1
Purchase Order Vendor Ship Days Lead Time = 1
Purchase Order Vendor Lead Time = 5
Purchase Order Conversion Lead Time = 1
Purchase Order Requisition Firm Lead Time = 1
Purchase Order Disassembly Wait Lead Time = 0
Purchase Order Component Ship Lead Time = 0

	Tue	Wed	Thu	Fri	Sat	Sun	Mon	Tue	Wed	Thu	Fri
	6 Dec	7 Dec	8 Dec	9 Dec	10 Dec	11 Dec	12 Dec	13 Dec	14 Dec	15 Dec	16 Dec
									WO Pick
									Planned PO Due
LT Type	PO Firm	PO Conv	PO Vendor	PO Vendor	PO Vendor	PO Vendor	PO Vendor	PO Ship	PO Receipt/Inspection
LT Days	1	1	1	2	3	4	5	1	1
LT Cumulative	1	2	3	4	5	6	7	8	9

MRP Planning creates a planned purchase order due on 14 Dec to satisfy demand and uses the Purchase Order Lead Times to back-schedule the activity that must take place to properly manage the planned order.

14 Dec is the day the Purchase Order is the scheduled completion date for Receiving Inspection.
13 Dec is the day the expected dock date for the material purchased.
8 Dec – 12 Dec represent the number of days required by the vendor to produce the item.
7 Dec is the day the Purchase Order must be converted from Firmed to Approved.
6 Dec is the day the Purchase Order must be changed from a Planned Order to a Firm Order.

Title	MRP Lead Times

URL Name	MRP-Lead-Times

MRP Lead Times