Replenishment Lead Time
I am going through TSCM60 and am facing a problem understanding the concept of Replenishment Lead time. I will explain what problem I am facing grasping the concept.
As can be seen, Replenishment lead time according to the manual:
Only the inward and outward movements that take place within the replenishment lead time are included in this check.
Now this seems in contradiction to checking the box: Include Sales requirements because this considers the requirement from the already made sales orders. On the other hand the RLT only the time till the product (from inhouse production or external procurement) becomes available.
For an already confirmed Sales Order requires a Material Availability Date of 7 October for a delivery on 10 October. Now, an order comes along later that requires a delivery on 8th October and hence a MAD of 5th October. The problem is that if using the RLT, the required MAD is to be provided to the system for the latter Sales Order (5th Oct. MAD), the full amount of the material is not available on 7th October for the former Sales Order.
So what is the system going to do if both RLT and Include Sales requirements are being employed?
The graph in the manual makes it look as if the system is going to commit the full amount for the 5th October MAD and snub the customer requiring the delivery on 10th by sending him/her the remaining material i.e. a partial delivery on requested date of delivery.
Edited by: shabie on Sep 26, 2011 7:52 AM
Jignesh Mehta replied
Yes. Your understanding is correct.
If you activate Replenishment Lead Time, for all the Deliveries whose date falls after end of RLT, system will assume that Material will be available & everything will be confirmed.
This means in your example, if the RLT for 5th October MAD, if the RLT falls on 4th October, system will confirm the entire stock. Similarly, for 7th October MAD, if the RLT falls on 6th October system will confirm entire stock here also. But in this case, if the RLT fall on 8th October, system will confirm the partial stock, if available & balance on 8th October.
Hope this helps,