Does Lead Time use Calendar days or Working days? Do I count weekends?
We have a LT of 52 weeks.
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Good question.
I always assumed calendar days. So for a purchased part that has a 1 week lead time, I’d enter 7. If I ordered that part on 10/1, I’d expect to have it by 10/8.
But if it had a lead time of 5 days, and I ordered it on Tuesday 10/1, the system would assume it would arrive on 10/6 (a Sunday). Hmmm …
In order for it to be business days, you’d potentially need to specify calendars for your suppliers, so it would know when they’re off (like US, as opposed to Canadian Thanksgiving)
I would enter 364 (7 x 52) for a 52 week lead time.
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i always get confused what uses what calendars and day. I know some things are calendar days and others are working.
Does it pull the Supplier Calendar first over the other calendars?
I don’t know if there even is such a thing as a supplier calendar. While that could theoretically improve the forecasting accuracy, it could become cumbersome to maintain. Plus you’d need to have a calendar for each supplier that you want a “special” calendar for.
If there is, I’d think that which calendar to use, would depend on the context. Purchases would use supplier calendars, while in-house production would use production calendars.
edit
Apparently you specify a calendar for a vendor.
Which I would only ever do if they were a critical vendor and had differences with your normal calendar. Like if the do a plant shutdown for 1 week every year for maintenance, recognize special holidays (where they’re closed for more than one day), etc…
looks like you could set up a supplier calendar. I guess it would work great if you know your supplier was closed a week in summer or Christmas. We use some small shops and they close.
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I have no idea what PO suggestions would do if you have two suppliers of a part, and one has some down time in the immediate future. Does it consider that down time when using the suppliers lead time?
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really not sure…I may have to have them test this.