What is the difference between “Fixed Lead Time” and “Variable Lead Time?”

Summary:
What is the difference between “Fixed Lead Time” and “Variable Lead Time?”

Answer1

Fixed Lead Time uses the value from the Item Master (Mfg detail) “Lead Time Level field,” typically a user defined number.

Variable Lead Time calculates the Work Order Start Date using the Field value in the Item Master “Lead Time per Unit” The lead time rollup program updates this field based upon the Mfg. routing.

Answer2

In addition, within the routing you can define “fixed or Variable” times per operation step. This is key, since some operations like “paint Cure time,” “burn-in” (for electronics) etc. require the same static amount of time regardless of the quantity. Production time can also be based upon “batch size.” Purchased parts typically use Fixed lead time. Mfg items use Variable in most cases.

*Questions excerpted from ITToolBox.com*

Disclaimer: Contents are not reviewed for correctness and are not endorsed or recommended by PeopleSoft-Planet.com.

Write your comment