Lead time outputs

A new home for the Coupa Supply Chain documentation

Starting with Supply Chain 42, our documentation will be located on Coupa Compass. The help here will continue to be accessible for the foreseeable future, but will no longer be updated. If you need a Compass user account, contact your company’s Designated Support Contact (DSC).

You can access new and updated Supply Chain documentation in the following location on Compass:

https://compass.coupa.com/en-us/products/supply-chain-design-and-planning

Lead time outputs

Lead Time Demand Dist

Based on the demand class, a corresponding distribution is identified to model lead time demand (a lead time demand distribution). The daily demand statistics (mean and variance) are scaled to lead time demand statistics and then determine the lead time demand distribution's parameters.

Lead Time Demand Mean

This is the average demand during the risk period (Coverage).

Lead Time Demand Mean = Demand Mean * Coverage

Lead Time Demand Std Dev

This is the standard deviation of demand during the risk period (Coverage).

Lead Time Demand Std Dev = SQRT(Coverage * (Daily Demand Std Dev)^2+(Daily Demand Mean)^2 * (Lead Time Std Dev)^2)

Where:

Demand variability = Coverage * (Daily Demand Std Dev)^2

Lead time variability = (Daily Demand Mean)^2 * (Lead Time Std Dev)^2

Demand variability only adds variability to Lead Time Demand Std Dev when Coverage is not zero.

Fractional sourcing

For those networks with multiple sources or multiple transportation modes, the lead time demand distribution (LTDD) for the site is calculated from individual lead time demand distribution by source and mode.

Last modified: Friday May 12, 2023

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