Lead Time Review (ICE550)

How to

Use Lead Time Review to modify to Lead Time for a receipt. In the upper portion of the screen, you can specify the warehouse, item and indicate the type of documents you want to view—transfers, purchase orders or both. You can also specify the PO number and receipt or Transfer number and shipment line. The transfers shipment lines and purchase order receipt lines are displayed in the browser so you can modify the lead time information as needed.

This modified lead time called “Qualified Lead Time” is used in calculations concerning lead time. Any changes to the Lead Times will be reflected by recalculating the replenishment Order Point and Line Point for the item. If there is no qualified lead time then the actual lead time is what is used in calculations.

The program lists abnormal, ignored or all Lead Times for items and allow for Lead Time correction.

For Example: Since actual lead time is the difference between the order date and the receive date. A line in Lead Time Review might show an actual lead time of 7 days. In some cases you may need to “qualify” that lead time, because something caused that line arrive later or sooner than indicated. In such a case actual lead time would stay 7 but you would enter the qualified lead time that represents the correct lead time value that is to be used in calculations in the system. You can select the Abnormal checkbox to flag a Lead Time as abnormal if it is more than 50% different from the average or if the ARP Lead Time minimum or maximum threshold has been reached. The ARP minimum and maximum thresholds are established in the Inventory Control Replenishment Parameters and can be in effect for various product scopes.

You can select the Ignore checkbox to prevent this lead time from be included in average lead time calculations.

There are times when lead time on a particular receipt should be ignored and not factored into the average lead time. Generally, this occurs when a product’s lead time varies significantly from the average, and, if factored into the average, could result in an order point that is too high or too low.

Other examples of receipts where you might ignore the lead time include:

When a product was shipped using a faster shipping method to expedite delivery on a specific order.
When stock is purchased as a “pre-buy” to take advantage of early purchase discounts, but shipment is delayed.
When stock is received in the system long after it actually showed up in the warehouse (delay in data entry).
When a purchase order was not created until the date of receipt.

The Lead Time options provide parameters that can be set to monitor exceptional lead times and automatically override lead time. You can set to ignore the lead time on product replenishment transactions in several FACTS functions.