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Planning time

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The concept of planning time is an extremely important factor in the entire order process, but also one that is difficult to establish.

The planning time parameters you set up in DC1 Distribution, and how they are retrieved, differs depending on if DC1 Inventory Control is installed.

What is planning time

Planning time is, in simple terms, the time it takes to replenish stock. In DC1 Distribution, several factors come into play when determining this. These include:

  • Administration time: The time used for your own administration of a purchase. This includes the time lapse from when a need is apparent until your order has reached the supplier, plus the time lapse from when the goods have arrived until they are available for use (i.e. sellable in your warehouse).
  • Lead time: This is the time it normally takes the supplier of this item, after receiving your order, to send it from his warehouse/plant.
  • Transport time: The time it takes to transport your goods from the supplier’s premises to your premises.

Note: How these factors are viewed, depends on how your company functions. Some companies, for example, view the Administration time as part of the Lead time.

The sum of the above is the planning time. In graphical terms it can be viewed as illustrated below.

Flowchart

Being able to determine the planning time with 100% accuracy is a difficult task. It is quite often an area around which considerable debate is given. By defining the different time parameters described above coupled with the option to define a safety stock level, the level of uncertainty is greatly diminished.

Enquiries and Printouts

  • Planning time enquiry
  • Time axis enquiry
  • Time axis printout
  • Lead time analysis/update list (only if DC1 Inventory Control is installed)

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