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Replenishment Lead Time

Former Member
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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 example,

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

Accepted Solutions (1)

Accepted Solutions (1)

jignesh_mehta3
Active Contributor
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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,

Thanks,

Jignesh Mehta

Former Member
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Thank you Jignesh for such a lucid reply but I still have one major confusion. From what I understood activating RLT means that if the RLT is on or before the MAD, the full stock gets confirmed and the customer who is to be delivered on a later date will suffer if the full amount for its order's MAD is not available. Then the remaining is confirmed as soon as the next time stock becomes available which means the customer is going to receive 2 partial deliveries because someone else ordered before him/her.

This method could create such a horrible domino effect where all the amounts on the required MADs of many different Sales Orders could get messed up. For example as you said, that on October 8 the remaining amount gets committed. Now this in turn may bite off some amount from another Order's MAD resulting in multiple deliveries for the 3rd Customer. If this is how SAP does it, this is one hell of an inefficient way to deal with things as the freight costs, among myriad other things, are going to go through the roof.

The best way would be to commit only without interfering the amounts of existing orders' MADs by going with the Sales requirements consideration. RLT is chaos 😛

Edited by: shabie on Sep 26, 2011 8:45 AM

jignesh_mehta3
Active Contributor
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Yes. That is true.

RLT can create a choas, because you cannot always be sure that Material (specially Externally procured) will be Definitely Available in particular number of days. There are generally some unforeseen delays (e.g. Transport Strike, Road accident / Traffic Jams, Labour unrest, etc).

That is why it is advisable to generally deactivate RLT.

RLT can be activated for locally procured material & that Material which is easily available (e.g. Nut Bolts, Grease, Glass, etc).

Hope this clarifies,

Thanks,

Jignesh Mehta

Former Member
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This is such a proud moment for me. Someone with so many points seems to agree with me! I think my confusion is almost crystal clear. Just one small doubt that I will lay it out for you.

You said that it is generally advisable to not activate it but it can be activated for in-house production and materials that are easily available.

What I understood from this statement of yours is that these commodities are likely to be much more easily available and hence in large numbers such that overstepping over other requirements is unlikely to happen. Even if initially it does seem to affect other MADs, additional materials could easily be procured (internally or otherwise) on a short notice so that the materials are available on time for all MADs after all when the date arrives, just not from the originally planned (purchase or production) order.

Kindly confirm this or correct me if I am wrong.

Oh one question: You've got loads of points and seem to be quite helpful. Do points help you in some way in real life? Or is it just an indicator of how selfless you've been?

jignesh_mehta3
Active Contributor
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Hello,

Thank you for the appreciaton.

Yes. Your understanding is correct - that it is generally advisable to not activate it but it can be activated for in-house production and materials that are easily available.

For your question regarding points:

For it's use in real life - You just appreciated me & that is the genuine example of use of points in real life. It is more about feeling of satisfaction - to give back something to the forum from which I have got so much. I remember of so many instances in past when client was bombbarding me with issues & I did not had ready solutions. SDN Forums & it's memers have always helped me during those times.

I don't know whether I am selfless or not... but one thing I can say for sure, contributing to SDN forums has help me a lot in learning SAP SD. Also there are many other senior contributors in the forum who are really selfless since last couple of years...

Thanks again,

Jignesh Mehta

Answers (0)