Calculate Lead Time Cost

Explanation

Use this function to calculate the lead time cost of a part. The lead time cost is calculated per component and level in the structure of the top level part.

You can study the cost cost build-up over time. The product structure and the lead time, together with the costs associated with the part and its components, will make up the costs shown in the graph. This page can be used as a tool to improve business, restructuring the bill of material in such a way that large expenses are pushed forward as far into the future as possible. Such actions prolong the company's possibility to earn interest on money that otherwise would end up in WIP.

When you select to study a top level part, the lead time is calculated per component and level in the structure of the top level part. Effects of by-product cost distribution does not show in this page.

Prerequisites

The lead time cost can only be calculated for manufactured parts.

System Effects

No system effects.