Supply Planning Parameters for MRP

  • Work Order Fixed Lead Time – Fixed period for calculating work order lead-time.
  • Work Order Variable lead Time – Variable period by unit for calculating work order lead-time.
  • Work Order Lead Time Lot Size – Lot size for calculating work order lead-time.
  • Late Period Days – Number of past days the system can search for past due orders.
  • Reschedule Horizon – Number of days from today the system can scan for future rescheduling opportunities.
  • Minimum Reschedule Days – Number of days the system will reschedule an order (in or out) from its current period.
  • Past Due Forecast Days – Number of days in the past the system will search for overdue unconsumed forecast.
  • High Impact Late Demand Threshold – Threshold for highlighting late demand as high impact in the workbench.
  • Firm/Release Advance Warning – Threshold used by the system to determine when a warning message should be generated.

Work Order Lead Time = Work Order Fixed Lead Time +            (Work Order Variable Lead Time × (Order Quantity / Lead Time Lot Size))

Work Order Fixed Lead Time = 2 days

• Work Order Variable Lead Time = 1.5 days

• Work Order Lead Time Lot Size = 100 units

• Work Order Quantity = 300 units

Step-by-Step:

• Fixed Lead Time = 2 days

• Variable Component = (1.5 days × (300 / 100)) = 1.5 × 3 = 4.5 days

• Total Lead Time = 2 + 4.5 = 6.5 days

What is Lot Sizing Method?

The Lot Sizing Method is a planning parameter on the item record, used during MRP (Material Requirements Planning) or Demand Planning to decide how much quantity to procure or produce when there is a requirement.

Lead Time Offset

Lead Time Offset in NetSuite refers to the number of days before a demand date that a supply order (such as a work order or purchase order) must start or be placed, in order to meet that demand on time. It’s a forward or backward scheduling tool used in MRP (Material Requirements Planning) and Demand Planning.

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