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FAQ Vendor Managed Inventory What are cycle times?
FAQ Vendor Managed Inventory What are cycle times?
| What are cycle times? |
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When optimizing your supply chain, you need to understand the true cycle times of all processes. Here are a few of the cycle times you should consider in your supply chain: Supply Chain Cycle Time
The total time required to satisfy a customer order if all inventory levels were zero. To calculate, add up the longest lead times in each stage of the cycle.
Inventory Replenishment Cycle Time
Measure of the manufacturing cycle time plus the time included to deploy the product to the customer or to stock.
Customer Order Promised Cycle Time
The expected cycle time of a purchase order is the gap between the purchase order creation date and the requested delivery date.
Customer Order Actual Cycle Time
The average time it takes to actually fill a customer’s purchase order. This measure can be viewed on an order or an order line level. The measure starts when the customers order is sent/received/entered. It is measured along its various steps of the order cycle. Through credit checks, pricing, warehouse picking and shipping. The measure ends at either the time of shipment or at the time of delivery to the customer.
Manufacturing Cycle Time
Measured from the firm planned order until the final production is reported, it usually takes into account the original planned production quantity versus the actual production quantity.
Purchase Order Cycle Time
Measure of time from the creation of the PO to the receipt at the customer location provides the PO Cycle Time.
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