<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000353" xml:lang="en">
   <Header>
      <Title>Example: cumulative order lead time (COLT)</Title>
      <Keyword type="header" order="d1e201562">
         <Level1>Cumulative order lead time</Level1>
      </Keyword>
      <Keyword type="header" order="d1e201565">
         <Level1>COLT</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>LN uses COLT values to calculate the minimum length of the <Link href="/baanerp/cp/glossary/glossary#000065" role="glossary">order horizon</Link> and the <Link href="/baanerp/cp/glossary/glossary#000066" role="glossary">planning horizon</Link>:</Paragraph>
      <List>
         <ListItem>The noncritical cumulative order lead time (noncritical COLT)
		  is used to update an order horizon of an item.</ListItem>
         <ListItem>The total cumulative order lead time (COLT) is used to update
		  the planning horizon.</ListItem>
      </List>
   </AimSection>
   <GeneralSection>
      <Paragraph>This topic explains both the cumulative order lead time (COLT)
		and the noncritical COLT.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Noncritical cumulative order lead time</SectionTitle>
      <Paragraph>The noncritical cumulative order lead time (noncritical COLT) of
		an item is equal to the longest of the following lead times:</Paragraph>
      <List>
         <ListItem>The item's purchase lead time. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000335" role="manual">Purchase lead time calculation</Link>.</ListItem>
         <ListItem>The item's noncritical cumulative production lead time. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000337" role="manual">Noncritical cumulative production lead time</Link>.</ListItem>
      </List>
      <Paragraph>The reason why it can be necessary to compute a noncritical COLT
		is as follows. Suppose that a particular item has the following planning
		horizon:</Paragraph>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="144" width="324"
                   SRC="../images/nt_graph_000353a.gif"
                   alt="[...]"/>
         <FigLegend>
            <LegendEntry>
               <Symbol>OH</Symbol>
               <Desc>Order horizon</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>MPH</Symbol>
               <Desc>Master planning horizon</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>C</Symbol>
               <Desc>Current date</Desc>
            </LegendEntry>
            <LegendEntry>
               <Symbol>x</Symbol>
               <Desc>Requirement</Desc>
            </LegendEntry>
         </FigLegend>
      </Figure>
      <Paragraph>In this case, order planning is used to cover short-term
		requirements, while master planning covers long-term requirements. As long as
		requirement X falls within the master-planning horizon, this requirement is
		exploded to the item's critical components only. Explosion to noncritical
		components only takes place after the requirement has shifted into the item's
		order horizon. When that takes place, the total lead time for the item and its
		noncritical components must still fit within the order horizon: otherwise, the
		order will be delivered late.</Paragraph>
      <GeneralSection>
         <SectionTitle>Rules</SectionTitle>
         <Paragraph>For items that are critical in master planning (see the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session) and that have an item master plan, the
		  following rules apply:</Paragraph>
         <List>
            <ListItem>The item's planning horizon must at least be equal to the
			 item's total COLT.</ListItem>
            <ListItem>The item's order horizon must at least be equal to the
			 item's noncritical COLT.</ListItem>
         </List>
         <GeneralSection>
            <Paragraph>For items that are critical in master planning (see the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session) and that have no item master plan, the
			 following rules apply:</Paragraph>
            <List>
               <ListItem>The item's planning horizon must at least be equal to the
				item's total COLT.</ListItem>
               <ListItem>The item's order horizon must at least be equal to the
				item's total COLT.</ListItem>
            </List>
            <Paragraph>For items that are not critical in master planning (see the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session), the following rules apply:</Paragraph>
            <List>
               <ListItem>The item's order horizon must at least be equal to the
				item's total COLT.</ListItem>
               <ListItem>The item's planning horizon must at least be equal to the
				item's order horizon.</ListItem>
            </List>
            <Paragraph>Moreover, the following rule also applies to noncritical
			 items:</Paragraph>
            <List>
               <ListItem>The item's order horizon must at least be equal to the
				order horizon of the nearest critical parent item in the (multilevel) BOM
				structure.</ListItem>
            </List>
            <Paragraph>For more information on this rule, see <Link href="/baanerp/cp/onlinemanual/000318" role="manual">To synchronize order horizons between BOM levels</Link>.</Paragraph>
         </GeneralSection>
      </GeneralSection>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Cumulative order lead time</SectionTitle>
      <Paragraph>Item A is manufactured from components X, Y, and Z. Components X
		and Y are purchased from a business partner. Component Z is manufactured from
		subcomponents Z-1 and Z-2. Subcomponents Z-1 and Z-2 are purchased from a
		business partner.</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <THEAD noTR="1">
            <TR no="1" isLast="true">
               <TD rowspan="1" colspan="1">Item</TD>
               <TD width="68" rowspan="1" colspan="1">Lead time (days)</TD>
            </TR>
         </THEAD>
         <TBODY noTR="6">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">A</TD>
               <TD width="68" rowspan="1" colspan="1">2</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">X</TD>
               <TD width="68" rowspan="1" colspan="1">5</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Y</TD>
               <TD width="68" rowspan="1" colspan="1">2</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="1" colspan="1">Z</TD>
               <TD width="68" rowspan="1" colspan="1">1</TD>
            </TR>
            <TR no="5" isLast="false">
               <TD rowspan="1" colspan="1">Z-1</TD>
               <TD width="68" rowspan="1" colspan="1">7</TD>
            </TR>
            <TR no="6" isLast="true">
               <TD rowspan="1" colspan="1">Z-2</TD>
               <TD width="68" rowspan="1" colspan="1">9</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Paragraph>The lead times include safety time, extra lead time, and
		outbound time.</Paragraph>
      <Paragraph>The COLT of item Z is 10 days (1 + 9). The COLT of item A is 12
		days (2 + 10).</Paragraph>
      <Paragraph>Now, suppose that the item can also be purchased, and that the
		supply time in the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session is 21 days.
		This is converted to 15 working days. In this case, item A's COLT will be 15
		days instead of 12.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000316" role="manual">Lead times and horizons</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000317" role="manual">Cumulative order lead times and horizons</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000318" role="manual">To synchronize order horizons between BOM levels</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000335" role="manual">Purchase lead time calculation</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000336" role="manual">Cumulative production lead time</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000337" role="manual">Noncritical cumulative production lead time</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>