<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000420" xml:lang="en">
   <Header>
      <Title>Lead-time offsetting</Title>
      <Keyword type="header" order="d1e202266">
         <Level1>To calculate lead times</Level1>
      </Keyword>
      <Keyword type="header" order="d1e202269">
         <Level1>Calendars in LN</Level1>
      </Keyword>
      <Keyword type="header" order="d1e202272">
         <Level1>Offsetting</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>Enterprise Planning
		offsets lead times to find order start date and the order finish date. If,
		during <Link href="/baanerp/cp/glossary/glossary#000060" role="glossary">order planning</Link>, demand is
		generated, planned order receipts exist in a certain <Link href="/baanerp/cp/glossary/glossary#000109" role="glossary">plan period</Link>. This planned reception of goods requires the release of that
		order in an earlier period, so that the manufacturing site can start the
		production process, the sales department can dispatch the <Link href="/baanerp/td/glossary/glossary#000035" role="glossary">ordered quantity</Link>, or the supplier knows when to ship the goods for
		transport.</Paragraph>
      <Paragraph>The following diagram
		shows the crucial points in time in the lead-time offsetting
		process:</Paragraph>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" width="430" height="79"
                   SRC="../images/tr_flow_000420.gif"
                   alt="[...]"/>
         <FigLegend>
            <LegendEntry>
               <Symbol>A</Symbol>
               <Desc>Start date</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>B</Symbol>
               <Desc>Finish date</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>C</Symbol>
               <Desc>Requirement date</Desc>
            </LegendEntry>
         </FigLegend>
      </Figure>
      <Paragraph>Based on the lead-time
		components of which the total lead time of a planned order is built up, and
		which vary according to the order source type (purchase, production, or
		distribution), Enterprise Planning computes the date on which a <Link href="/baanerp/cp/glossary/glossary#000050" role="glossary">planned order</Link> must be released. This process is called
		lead-time offsetting.</Paragraph>
      <List>
         <ListIntro>The basic data that Enterprise Planning needs to perform
		  lead-time offsetting are:</ListIntro>
         <ListItem>Lead-time data:
		  lead-time components are partly common, partly source-specific.</ListItem>
         <ListItem>Calendars: <Link href="/baanerp/tc/glossary/glossary#Calendar_tc" role="glossary" Update="No">calendars</Link> determine when the resources
		  required to produce or buy the required goods are available, and what their
		  capacity is.</ListItem>
      </List>
      <Paragraph>Before Enterprise
		Planning can offset lead times, the lead-time components must be converted from
		days to hours. Only then, Enterprise Planning can compare the resulting hours
		with the available plan hours in the appropriate calendar.</Paragraph>
      <Paragraph>During the lead-time
		offsetting process, Enterprise Planning takes the requirement date as point of
		departure, and from there, takes into account the separate lead-time components
		in a fixed inverse chronological order to take backward steps in time. How big
		the steps are that Enterprise Planning, depends on the type of lead-time
		component, and the available space (plan time) in the calendar used to offset
		the lead-time component.</Paragraph>
      <Paragraph>This process finally
		brings Enterprise Planning to the point in time where the involved supplier
		must start the activities to be able to deliver the required goods in time: the
		order start date.</Paragraph>
      <List>
         <ListIntro>To offset the individual lead-time components, Enterprise
		  Planning uses different calendars. A calendar in LN not only represents
		  the dates in a chronological order, but for each date it also includes a daily
		  schedule that indicates:</ListIntro>
         <ListItem>whether a <Link href="/baanerp/cp/glossary/glossary#000008" role="glossary">resource</Link> is available on a particular day, or not.</ListItem>
         <ListItem>the exact hours on which
		  the resource is available.</ListItem>
         <ListItem>what the
		  capacity/efficiency rate of the resource is on specific hours.</ListItem>
      </List>
      <Paragraph>Which calendar
		Enterprise Planning selects to offset a specific lead-time component depends on
		the resource where the logistic activity to which the lead-time component
		relates, is carried out. For more detailed information about calendars, see
		help topic <Link href="/baanerp/cp/onlinemanual/000034" role="manual">Calendars in Enterprise Planning</Link>.</Paragraph>
      <Paragraph>When Enterprise Planning
		finished the offset of a specific lead-time component, the offset mechanism
		stops at a certain time on a particular date. From that point in time, the
		process continues to offset the next lead-time component of the total order
		lead time, for which Enterprise Planning switches to the calendar linked to the <Link href="/baanerp/cp/glossary/glossary#000008" role="glossary">resource</Link> that carries out the activity to which that
		lead-time component relates.</Paragraph>
      <Paragraph>Depending on the <Link href="/baanerp/cp/glossary/glossary#000058" role="glossary">fixed lead-time horizon</Link>,
		Enterprise Planning can offset in a detailed way, or in a more aggregated way.
		When Enterprise Planning offsets lead time in a detailed way, it individually
		offsets all the lead-time components of which the total order lead time for
		each order type is built up. In the more aggregated way, Enterprise Planning
		only offsets one lead-time component between the order start date and finish
		date.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>You can define
		  lead-time components in days or in hours. If there is only one hour/one second
		  available on a day, Enterprise Planning considers this as an available day in
		  lead-time planning.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000306" role="manual">Production planning in Enterprise Planning</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/lt000100" role="manual">Lead times in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>
         </Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>