Lead Time-The number of calendar days that it takes from the time a purchase order for an item is created to the item is fully received
The demand plan tells us when the goods are needed. They’re needed at the beginning of the month, or if I was doing a weekly plan, at the beginning of the week. And the supply plan plots our order dates moving backward from the demand plan’s date by using the lead time. And that then determines when our purchase or when our work orders should be created.
To set Lead Time at Item Level
Go to Setup → Accounting → Inventory management preferences.
Uncheck USE LEAD TIME AND SAFETY STOCK PER LOCATION
The purchase lead time is absent in the location subtab in the item record.
But we can set the lead time for the item irrespective of the location
To set Lead Time at per location per item level
Go to Setup → Accounting → Inventory management preferences.
Check USE LEAD TIME AND SAFETY STOCK PER LOCATION
Purchase lead time in the location tab will be present. We can set lead time per location per item here.
On checking Auto calculate, the system auto calculates the lead time by taking the average.
when the purchase lead time is checked for auto calculate, we do not have the ability to put in a manual value.
There is no way to do quantity-based lead time for purchased items.
We can add a purchase lead time to the item record manually. Rather than manually adding a purchase lead time, you can have NetSuite calculate the value for you using recent purchase orders. What NetSuite does is look at the most recently received POs for the item and then calculate the average number of days between the PO creation date and the receipt date. That then becomes the purchase lead time. And the value is recalculated every week, so it’s constantly updated based on recent activity.
PO does not have to be fully received. What’s important is that the line on the PO for this item was received. And that means that line gets pulled into the calculation. So it’s not about whether the PO is fully received. It’s about whether the line on the PO is fully received.