on 05-07-2013 7:29 PM
Hello ,
Can any one explain the difference between replenishment lead time and Planned delivery time . Can you please provide and example for this too .
Regards,
Nick
Hi Nick,
From APO SNP perspective, Replenishment Lead Time (RLT) is typically used in extended safety stock planning. This covers the total time required to procure an item (either produced in-house or externally procured).
In extended Safety Stock planning, both forecast of both demand forecast and RLT are used along with specified service levels and standard deviations. Please check the following link for the theoretical explanation.
http://en.wikipedia.org/wiki/Service_level
Planned Delivery Time (PDT) is the number of days required to procure an item through external procurement. It does not applicable for in-house production.
Thanks,
Rajesh
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