Automated Purchasing Process

Recalculated Lead-Times: 'Production' or 'Transit'

When PO25 is set to recalculate Lead-Times (option/restriction 2), the lead-time used in the calculation is the sum of the ‘Production Lead Time Days’ and the ‘Transit Lead Time Days’ from PO13 (or PO11 if no lead-time days are entered in PO13). When the recalculation routine calculates a change in the lead-time, this change is applied back to the ‘Production’ and ‘Transit’ lead-times in one of the following ways:

  1. If the new lead-time is greater than the old lead-time, the Production Lead Time value is increased and the Transit Lead Time remains unchanged. The system calculates the difference between the new lead-time and the old Transit Lead Time and this value becomes the new Production Lead Time. For example:

    • The old Production Lead Time is 10 and the old Transit Lead Time is 8. The old lead-time total is 18.

    • The new lead-time is recalculated to be 20 days.

    • The system calculates the new lead-time (20) less the old Transit Lead Time (8) and this value becomes the new Production Lead Time (12).

  2. If the new lead-time is less than the old Transit Lead Time, the Transit Lead Time is updated and the Production Lead Time is changed to zero. This situation may arise if a Supplier decides to stock an item rather than producing once orders are received AND the delivery time is improved. For example:

    • The old Production Lead Time is 19 and the old Transit Lead Time is 41. The old lead-time is total is 60.

    • The new lead-time is recalculated to be 20 days.

    • The system calculates the new lead-time (20) less the old Transit Lead Time (41), for a total of -21. Since the difference is less than zero, the system then populates the new Transit Lead Time with 20 and resets the Production Lead Time to 0 .

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