Lead Time

The requisition lead time is calculated for each stock item. The calculation takes into account the quantity requested and the time between Requisition and Purchasing.  

The Lead Time Calculation job will search the Commodity Journal for records with transaction type 'RQ', with a Warehouse and a Transaction Date greater than or equal to the From Date Parameter.  It will sort the records on Warehouse, Commodity, Stock Item Suffix, Transaction Code, Transaction Department Code, Transaction ID, Transaction Version Number, Vendor Line, and Commodity Line.

For each RQ Commodity Line found that meets the parameter, the version of the transaction will be evaluated. If the Transaction Function of the initial version is a Modification or Cancellation transaction, all versions of the transaction are skipped. If the initial version of the transaction is ‘New’, the Transaction Date is stored. This is the date to be used in the lead time calculation. The last final version of the same RQ Commodity Line must be found to determine the quantity to use. The quantity found on the Commodity Journal represents the total quantity.  If the Transaction Function of the last final version is New or Modification, then the transaction is selected for calculation, and the quantity stored.  If the last final version is a Cancellation, the transaction will be skipped and no calculations will be made.

In order to limit the calculation performed for a wide range of time, there is a limit to the number of transactions to perform the calculation on.  If the Number of Alternate Orders field on the Warehouse (WHSE) is filled in, it will be the maximum number of transactions that should be selected for calculation. The transactions to select are the first records that meet the criteria that are fully referenced, meaning the total reference transaction Received Quantity is equal to the Ordered Quantity. Different versions of the same transaction will only count once. If the number of transactions processed is greater than the Number of Alternate Orders field, then an exception line will be output to the Exception Report.

The Commodity Journal is then searched again for all PO Commodity Lines that reference the Requisition Commodity Line.  Search for PO Commodity Lines where the RQ Transaction Code is equal to Reference Transaction Code, RQ Transaction Department Code is equal to Reference Transaction Department Code, RQ Transaction ID is equal to Reference Transaction ID, RQ Vendor Line is equal to Reference Vendor Line, and the RQ Commodity Line Number is equal to Reference Transaction Line. All selected records will be sorted on Transaction Code, Transaction Department Code, Transaction ID, Transaction Version Number, Vendor Line Number, and Commodity Line Number.

For each PO Commodity Line returned, the transaction date of the initial version is stored.  The last final version of the transaction will determine the quantity to use in the calculation. If the last final version is not a Cancellation, the transaction will be used. If the last final version is a Cancellation, the PO is skipped, no calculations are performed, and the next RQ Commodity Line is selected. The Requisition Lead Time is calculated by multiplying the number of items purchased by the number of days between the initial RQ and the initial PO. This calculation is done for each PO Commodity Line found referencing the Requisition. If the total number of items requested is equal to the number of items purchased, then the quantities calculated above will be summed up and divided by the total number of items requested. If the quantities are not equal, the RQ is skipped, and no calculations are performed. This is the Requisition lead time for one RQ Commodity Line.

If more than one RQ Commodity Line is found, then this process is repeated until all RQ’s have requisition lead time calculations.  These are then averaged to produce one lead time calculation for each warehouse stock item. This value should be rounded up and is the Requisition Lead time.

If no RQ or referencing PO transactions are found in the Commodity Journal, the Requisition Lead Time will not be computed. In this case, the Requisition Lead Time on the Inventory Table for the stock item will not be updated. If calculated, the Requisition Lead Time Field on the Inventory Table will be updated for each stock item.

The vendor lead time is calculated for each stock item.  The calculation takes into account the quantity purchased, and the time between Purchasing and Receiving.  

This part of the Lead Time Calculation job will search the Commodity Journal for records with a transaction type ‘PO’, with a warehouse and a Transaction Date greater than or equal to the From Date Parameter.  It will sort the records on Warehouse, Commodity, Stock Item Suffix, Transaction Code, Transaction Department Code, Transaction ID, Transaction Version Number, Vendor Line, and Commodity Line.

For each PO Commodity Line found that meets the parameter, the version of the transaction will be evaluated. If the Transaction Function of the initial version is a Modification or Cancellation transaction, all versions of the transaction are skipped. If the initial version of the transaction is New, the transaction date is stored. This is the date to be used in the lead time calculation. The last final version of the same PO Commodity Line must be found to determine the quantity to use. The quantity found on the Commodity Journal represents the total quantity, not just the difference of the quantity.  If the transaction function of the last final version is New or Modification, then the transaction is selected for calculation, and the quantity stored.  If the last final version is Cancellation, the transaction will be skipped and no calculations will be made.

In order to limit the calculation performed for a wide range of time, there is a limit to the number of transactions to perform the calculation on. If the Number of Alternate Orders field on the Warehouse (WHSE) is filled in, it is the maximum number of transactions that should be selected for calculation. The transactions to select are the first records that meet the criteria that are fully referenced, meaning the total reference transaction Received Quantity is equal to the Ordered Quantity. Different versions of the same transaction will only count once. If the number of transactions processed is greater than the Number of Alternate Orders field, then an exception line will be output to the Exception Report.

The Commodity Journal is then searched again for all RC Commodity Lines that reference the Purchase Order Commodity Line.  The Lead Time Calculation will search for RC Commodity Lines where the PO Transaction Code is equal to Reference Transaction Code, PO Transaction Department Code is equal to Reference Transaction Department Code, PO Transaction ID is equal to Reference Transaction ID, PO Vendor Line Number is equal to Ref Transaction Vendor Line, and PO Commodity Line Number is equal to Reference Commodity Line. All selected records will be sorted on Transaction Code, Transaction Department Code, Transaction ID, Transaction Version Number, Vendor Line number, and Commodity Line Number.

For each RC Commodity Line selected, the transaction date of the initial version is stored. The last final version of the transaction will determine the quantity to use in the calculation. If the last final version is not a Cancellation, the transaction will be used. If it is a Cancellation, the RC will be skipped, and the next one selected. The Vendor lead time is calculated by multiplying the number of items received by the number of days between the initial PO and the initial RC. This calculation is done for each RC transaction found referencing the Purchase Order. If the total number of items received is equal to the number of items purchased, then the quantities calculated above are summed up and divided by the total number of items purchased. This is the Vendor Lead Time for one PO transaction.  If the quantities do not equal, the lead time is not calculated, and the next PO Commodity Line is selected.    

If more than one PO Commodity Line is found, then this process is repeated until all PO’s Commodity Lines have vendor lead time calculations. These are then averaged to produce one lead time calculation for each warehouse stock item.  This value should be rounded up and is the Vendor Lead time.

If no PO Commodity Line or referencing RC Commodity Lines are found in the Commodity Journal, the Vendor Lead Time will not be computed. After each calculation, the Vendor Lead Time Field on the Inventory Table will be updated for each stock item.