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Supplier - Calculation - When computing lead times and safety stock, ignore completed purchase orders receipted more than X months ago

Judi Zietsman avatar
Written by Judi Zietsman
Updated over 2 weeks ago


Navigate to: Settings > Configuration > Supplier


Definition

Specifies how many months of fulfilled purchase order history will be included when calculating item lead time and safety stock. Any purchase orders older than the defined number of months will be excluded.

Use case

Older purchase orders may no longer reflect current supplier performance. For example, a supplier might have improved, changed processes, or operated under unusual conditions such as during a pandemic. Limiting the calculation to more recent purchase orders—such as the past 12 months—can produce more accurate results.

However, setting this value too low can result in insufficient data for accurate calculations. Because the app requires three valid historic purchase orders to calculate lead time and safety stock, avoid restricting this period to 12 months if the supplier typically delivers only twice per year.

Always review the data before adjusting this setting, and reduce the time period with caution.


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