Question

Lead time defined in Inventory part (Acquisition tab ) is not considered when creating purchase orders

  • 22 September 2021
  • 6 replies
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Userlevel 2
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When there are no information in the Supply Chain Matrix window for a supplier does the system consider the purchase lead times mentioned in the Inventory Part-->Acquisition tab when purchase orders are created? Or is it always the supply chain matrix?

Apps 10 / UPD 11


6 replies

Userlevel 5
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Hi @PoornimaM ,

I hope you mention the below Purchase Lead time

 

 

According to the definitions, Purchase Lead Time is normally calculated in the Calculate Purchase Leadtime window.

The calculation considers the following four elements:

  • supplier manufacturing lead time, (in Supplier for Purchase Part window / General tab)
  • external transport lead time, (Supply Chain Matrix)
  • internal transport lead time, (Supply Chain Matrix)
  • internal inspection lead time ( in Supplier for Purchase Part window / Inspection Info tab)

The system uses this value to set dates when you enter purchase orders and similar items, for instance in the order point calculation.

If the purchase lead time was not calculated in the Calculate Purchase Leadtime window, this value will be 0 (zero). You can manually enter a value

So, if you have a value in Purchase Lead Time field, it should consider the dates when creating the PO.

Hope this helps.

Thanks!

Userlevel 7
Badge +12

@PoornimaM Purchasing Lead Time in Inventory Part-->Acquisition tab is normally calculated in the Calculate Purchase Leadtime window. The calculation considers the following four elements: supplier manufacturing lead time, external transport lead time, internal transport lead time, and internal inspection lead time. The system uses this value to set dates when you enter purchase orders and similar items, for instance in the order point calculation. If the purchase lead time was not calculated in the Calculate Purchase Leadtime window, this value will be 0 (zero). You can manually enter a value.

 

  • Supplier Manufacturing Lead Time: The time that normally elapses between the time an order is received by a supplier and the time the order is shipped. This information is entered on the Supplier for Purchase Part/General/Order Information.
  • External Transport Lead Time: The time that normally elapses from the time the product is available for shipment by the supplier until the time the product is registered as Arrived at the receiver. This information is entered in the Supply Chain Matrix for Supplier page.
  • Internal Transport Lead Time: The time that normally elapses from the time the product is registered as Arrived until the time it is available for inspection. This information is entered in the Supply Chain Matrix for Supplier page.
  • Internal Inspection Lead Time: The time that normally elapses from the time the product is available for inspection until it is available in inventory. This information is entered on the Supplier for Purchase Part/Inspection Info tab.

So yes, if Supply ChanMatrix is empty, you can set this manually and the system should consider this. 

Userlevel 2
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@EnzoFerrari  @Lakmini Weerakoon 

Thank you so much for the explanation. But I tried running MRP for a part which

-has only one supplier in the system (with primary supplier checkbox ticked)

-No supply chain matrix information for that supplier

-has information defined for lead times in inventory part → acquisition tab (manually entered not calculated)

This did not consider the information in the inventory part window when the primary supplier tick was on. The lead time was 0 (wanted receipt date and latest order date was the same) in the PR created by MRP. But if I untick the primary supplier checkbox it worked fine and considered inventory part values.

Please refer the attachment I have explained briefly with the screen prints. Would really appreciate your support.

Userlevel 5
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Help text for ‘Latest Order Date’ field in Purchase Requisition line in App8:


If a purchase part has a primary supplier, the purchase requisition uses internal inspection time and manufacturing lead time from the supplier for the purchase part record and external transport lead time and internal transport lead time from the supply chain matrix, to calculate the latest order date. The lead time is calculated in workdays according to their calendars. If there is no primary supplier, the purchase requisition uses purchase lead time from the inventory part to calculate the latest order date. This is the total lead time, which is calculated in work days.

 

Help text in App9 and App10:

Internal inspection time and manufacturing lead time from the supplier for the purchase part record (if exists), external transport lead time, transport lead time and internal transport lead time from the supply chain matrix are considered as lead times. 

 

May be the functionality work same although the help text in App9, App10 does not mention about the Primary Supplier specifically.

Userlevel 5
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@PoornimaM It is not that System ignores Purchasing Lead time when MRP creates a PR while there is a Primary Supplier defined for your Part.

In fact, this behavior doesn’t have anything to do with Planning process (MRP, etc..) or the Supplier For Purchase Part Record > Primary Supplier Check Box at all. Simply, when you add a Line to a PR, if you specify a Supplier, then system look out for “Supplier Specific Lead times” (E.g. Those defined in Supplier Matrices, etc..). If you don’t specify a Supplier, then it takes “Part Specific Lead times” irrespective of the fact whether there is a Primary Supplier for your Part or not.

See below example,

Prerequisite :  Part Purchase Lead Time 15 Days

You start with No Primary Supplier defined for the Part, Run MRP while having a Demand for 100 Units due 10/20/2021,

  1. Run MRP. It Creates a PR as follows (As you said, when there is no Primary Supplier, system creates the PR line with No Supplier Information and “Part Specific Lead time” of 15 days were used in Calculating Latest Order Date.
  2. Add a Second Line to the same PR, same Part, Same Qty. Behavior is the same

  3. Now Add third line and Specify your Supplier. Then system looks out for a “Supplier Specific Lead times”. Since there is none, it Calculates Latest Order Date same as the Demand date.

     

  4. Now Set your Supplier as Primary Supplier and add Fourth Line. System Auto-fetches the Supplier in this case. Behavior is same as in above Point 3,

     

Conclusion :  Application behavior is consistent. It doesn’t depend on the Planning method (Manual, MRP, etc..) or the  Supplier For Purchase Part Record > Primary Supplier Check Box. Simply, when you/system add a Line to a PR, if you specify a Supplier, then system look out for “Supplier Specific Lead times” (E.g. Those defined in Supplier Matrices, etc..) as it is given Highest priority. If you don’t specify a Supplier, then it takes “Part Specific Lead time” from Inventory Part > Acquisitions tab independent of any other Data setup.

Userlevel 5
Badge +4

Hi @PoornimaM,

As I remember if there is no primary supplier, the purchase requisition uses Purchase Leadtime from Inventory Part to calculate the latest order date. Purchase Leadtime is normally calculated in the Calculate Purchase Leadtime window. The Purchase Leadtime calculation is already explained by Lakmini and Enzo.

If a purchase part has a primary supplier, the purchase requisition uses Internal Inspection Time and Manufacturing Leadtime from supplier for purchase part record and Leadtime and Internal Time from the supplier record, to calculate the latest order date. In this case, the Purchase Leadtime From Inventory Part/Acquisition will not be used for part 1008141 when calculating the Latest Order Date.

Instead, you need to specify the lead times that are valid for this combination of supplier-site and supplier-purchase part. If you specify the internal and external transport time for the supplier and the site (Inventory/Supply Chain Parameters) and also inspection lead time and manufacturing lead time for the purchase part 1008141 and supplier 5003825 (Supplier for purchase part) these values will be used when calculating latest order date.

Best Regards,

Indika

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