Summary
This article walks through how planning lead time is calculated.
Applies To
All Items in StockIQ that do not have an order policy of Min/Max
Process
Lead time refers to the delay between ordering from a supplier and when the goods are actually in your warehouse and ready for sale.
Planning Lead Time: This is your overall, end-to-end lead time that StockIQ will use to plan orders for all suppliers and supplier types. This lead time is made up of 4 components summed together:
- Admin Lead Time: This is any administration-related delay between when the order is created, and when the order is actually released to the supplier. This can be factors such as managerial review, a vendor confirm/PO process, or other delays before work actually starts on the order.
- Manufacturing Lead Time: This is the lead time to actually manufacture or procure the product. For your vendor, this is their time to build the product, or source it from their own suppliers. For workorders, this is your assembly time.
- Shipping Lead Time: This is the time for the product to reach your door once it has left the supplier, e.g. shipped from a vendor on a container or truck, or the material transferring on a truck between one warehouse. (There is typically no shipping lead time associated with work orders)
- Putaway Lead Time: This is the time between when the shipment of material arrives at the receiving dock in the warehouse, and when it is actually received by the warehouse crew and put away for use in the warehouse, ready for sale.