LT Days calculation
I understand the below calculation and that it is a weighted average of all receipts for an item, but I was wondering how far back does the calculation look? Does the calculation take into account every single receipt for all years or is it set to look at 6 months for example?
E1: 41: Buyers Guide Report (R4152) (Doc ID 663680.1)
LT Days
To produce data in the "LT Days" column the program uses the average lead-time for this item. It is calculated in the P.O. Receipts (P4312) program by subtracting the PO Order date from the P.O. Receipt date. The average lead-time is retrieved from the Supplier/Item (F43090) file and is recalculated using units from the Purchase Order Receiver (F43121) table, multiplied by the current lead-time days. The resulting total days is divided by the total units received to find the average lead-time.