Calculating Historical Lead Time

This chapter provides an overview of historical lead-time calculations and discusses making calculations.

Click to jump to parent topicUnderstanding Historical Lead-Time Calculations

Historical lead is the average shipping lead time it takes to ship an item after entering an order. This value is only informational. You can use it to uncover potential shipping problems and to specify the item's projected order lead time. You calculate historical lead using shipments within a certain time frame, such as the last three months, and by specifying the calculation method.

Click to jump to parent topicMaking Historical Lead Calculations

This section discusses how to:

  1. Define historical lead-time calculations.

  2. Define lead-time processing parameters.

  3. Review shipping lead times.

Click to jump to top of pageClick to jump to parent topicPages Used to Make Historical Lead Calculations

Page Name

Object Name

Navigation

Usage

Historic Lead Calculation

HIST_LD_SETUP_INV

Inventory, Manage Inventory, Analyze Inventory, Setup Historic Lead Calc, Historic Lead Calculation

Define historical lead calculations based on various time frames and methods.

Historical Lead Calculation

HIST_LD_REQ_INV

Inventory, Manage Inventory, Analyze Inventory, Calculate Historical Lead Time, Historical Lead Calculation

Define parameters for the Historical Lead Calculation process (IN_HIST_LEAD).

Shipping Lead Time

FULFILL_ATTRIB_INV

Inventory, Manage Inventory, Analyze Inventory, Shipping Lead Time

Review the historic lead times calculated by the Historical Lead Calculation process and update the projected lead time of an item.

Click to jump to top of pageClick to jump to parent topicDefining Historical Lead-Time Calculations

To define historical lead time calculation parameters, use the Historical Lead Calc Setup (HIST_LD_SETUP_INV) component.

Access the Historic Lead Calculation page.

Each shipment has a lead time that is equal to the number of days between the demand date and the shipment date. The demand date is the date the material stock request or sales order was sent to PeopleSoft Inventory to begin the fulfillment process; the ship date is the date the material stock request or sales order demand line was shipped.

Calculation Time Frame

Determines the period of time to include in the calculation.

Average

Calculates the historic lead time by summing the individual lead times and dividing the result by the number of shipments.

Weighted Average

Calculates the historic lead time by dividing the specified calculation time frame into the number of time periods. The lead time for shipments that fall within a more recent time period are weighted more heavily than those in an earlier time period. For example, if you specified three months as the time frame and three as the number of time periods, each time period is approximately one month. The lead time for shipments that fall in the earliest period have a weight of one, those that fall in the middle period have a weight of two, and those in the most recent period have a weight of three. The historical lead for the item is skewed toward the more recent shipments. Weighted average calculation can provide a more accurate picture of historical lead.

Click to jump to top of pageClick to jump to parent topicReviewing Shipping Lead Times

Access the Shipping Lead Time page.

The result of the Historical Lead Calculation process appears in the Historical Lead Days field. Enter or update the Projected Lead Days field. This information is for reporting and inquiry purposes only.