Lead Time Formula vs Projected Lead Time

Question

If you specify both a Lead Time formula & Projected lead time in the Maintain Inventory, which does MRP consider? I did a average lead time calculation based on the last 15 months using the PO date vs the Receipt date and was going to update the Projected Lead Times that are entered into the system. But now I am considering using the LT Formula. If I do, should I remove the Projected LT? What happens if I leave it? 
 
 I know I can test this on our test db, but I wanted to hear from the experienced users. Anyone have some input on this?

Ramon M. · Accepted Answer

I believe that if you use a formula, the lead time will be recalculated upon receipts. So whatever value is there now may change after another receipt depending upon the formula. Note that when a formula is present, the value is displayed and disabled. So you either set your own value, or use the formula. 
 If you choose to use the formula, you have the options of ignoring a particular PO from the formula if you feel it is some sort of exception (perhaps an expedited shipment that you do not want included in the formula). This is done by setting a checkbox and reason on the PO line for the item to Exclude From Lead Time. 
 Any manually entered value should be zeroed when you specify a lead time formula.

Sage 500

Lead Time Formula vs Projected Lead Time

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