Entering Lead Time Parameters

Lead time is the number of days from the placement of a purchase order to date of its receipt. Lead time affects order points, line points, and safety stocks; therefore, accurate lead times are critical to accurate purchase planning.

You can override the lead time by changing the calculated lead days, or by changing the lead factor used to calculate the lead time.

Seasonal products use a lead time for the season.

Enter lead time parameters for a defined product on the Forecast Parameters Maintenance window.

In addition to setting lead time parameters at the product level, you can also set these parameters at the system or buy line level.

The following procedure is a manual process for a single product. Use the Mass Load program to enter inventory parameters to groups of products.

To enter lead time parameters for a product:

From the Maintenance menu, select Product to display the Product Maintenance window.
Display a product record.
From the Inventory menu, select Primary Inventory Maintenance to display the Primary Inventory Maintenance dialog box.
From the Edit menu, select Forecast Parameters to display the Product Forecast Parameters dialog box.
From the File menu, select Hierarchy to display the Product Forecast Parameters dialog box.
In the Enter hierarchy branch field, enter the branch or territory ID.
Click OK to display forecast parameters for the selected branch in the Product Forecast Parameters dialog box.
Complete the following fields:

Field	Description
Minimum Lead Factor	The minimum number of most-recent purchase orders the system samples to estimate the lead time for the product.
Lead Factor	This field controls the automatic calculation lead time for the product. Seasonal products use a calculated lead time for the ”r;season” of the product. If greater than 0(zero), this is the maximum number of most-recent purchase orders the system samples to estimate the lead time for the product. If null, the system uses the lead factor set for the product's buy line. Entering 0 (zero) overrides the lead time calculation and the system uses the value of Lead Days for the lead time.
Lead Days	The lead time for the product. This field updates when Lead Factor is greater than 0(zero). You can override the calculated lead time by entering a user-defined lead time in this field.

Changes take effect when you exit Product Maintenance.

Overriding the Lead Time for a Product

You can override the calculated lead time by entering a user-defined lead time in the Lead Days field. The system uses this override until the next time you run the Update Demand Forecast program.

Overriding the Lead Time Calculation for a Product

Entering 0 (zero) in the Lead Factor field overrides the lead time calculation. The Update Demand Forecast program uses the current value of the Lead Days field as the lead time. The program will not calculate a new lead time until Lead Factor is set to a number other than 0(zero).

Note: If you do not enter a lead time in the Lead Days field, the program uses the current value of the Default Lead Time Days If Product And Buy Line Have Nonecontrol maintenance record.