Purchasing Lead Time in Microsoft Dynamics NAV
There are actually two Purchasing Lead times in Dynamics NAV.
If we look at the Replenishment and Planning Tabs of a Dynamics NAV Item Card or SKU Card, we see Lead Time Calculation and Safety Lead Time. The Lead Time Calculation is what most people would call Purchasing Lead Time. The reason it is called Lead Time Calculation is that the user is allowed to enter a Dynamics NAV date calculation—for instance, 1M-1D or 5W or 35D.
Figure 1 – View of Replenishment and Planning Tabs showing entries for Lead Time Calculation and Safety Lead Time
When you think about Purchasing Lead Time, think of it as Purchasing Notification Time. We define it as the amount of time the product needs in order to be delivered to your company that the Purchasing Agent needs to be alerted. This would include the time the supplier needs to make the product, the time in transit, and the time the Purchasing Agent needs to negotiate the purchase agreement and prepare and deliver the purchase documents. When MRP is run using the Calculate Plan with the Planning Worksheet, the starting date will be Due Date – Safety Lead Time – Lead Time Calculation.
Safety Lead Time is not really Lead Time at all, but the amount of time before the product is needed for production or distribution that it should be delivered to your company. We sometimes call this Dock Time or perhaps Quality Control Time. For instance, if the product is needed on Monday and it has a 3-day Safety Lead Time, it should be delivered on the previous Tuesday.
Figure 2 – Diagram showing how Safety Lead Time is used
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