Lead time is the time between when an item is ordered and
received. To analyze vendors and determine when to reorder items,
you can change how lead times are calculated.
Procedure
- In the Storerooms application, select a storeroom.
- In the Recent Lead Time Weight in % field,
enter a value. You can specify different lead time weights for different
storeroom locations.
- Save your changes.
Results
When you change this calculation, the weight in percent used
for the current inventory lead time is automatically considered 100%
minus the value in the
Recent Lead Time Weight in % field.
Example
For a storeroom, the
Recent Lead Time Weight in
% is set to 20%. A quantity of 100 items is ordered, for
which the item has an existing lead time of 30 days. The entire shipment
is received in 20 days (recent lead time). The inventory item's lead
time recalculates based on the recent receipt of the item as follows:
0.20 (20 days) + 0.80 (30 days) = 28 days
28
days become the recalculated lead time for the inventory items. When
the item is reordered, 28 is the value for inventory item's existing
lead time.