# Sourcing Cycle Time

Sourcing Cycle Time measures the average time required to source products (materials, semi-finished goods, products, goods, merchandize) from internal or external sources of supply (suppliers).

## Contents

### Calculation

Sourcing Cycle Time
=
 n Σ (Transfer Date – Order Date) i=1
n

where

• Transfer Date = The date/time the product was put away in storage (S1, S4) or transferred to the Make or Deliver process (S2, S3)
• Order Date = The date/time the product was ordered or a request to approve a return was received (S4)
• n = The number of orders received

Unit of measure: Days (Calendar days)

### Notes

Sourcing Cycle Time calculations for S1 and S4 processes differ slightly from S2 and S3 processes. Products ordered for S2 and S3 processes are generally linked directly to waiting Make or Deliver orders. For S1 and S4 processes the product received is typically stored until needed (replenishment).

Sourcing Cycle Time is dependent on the Order Cycle Time from your supplier. To understand the cycle time of the internal Source processes the supplier Order Cycle Time should be deducted:

 Internal Source Process Cycle Time = Sourcing Cycle Time (RS14) – Supplier Order Cycle Time (RS1)

The Internal Source Process Cycle Time measures the time the source process is not waiting for the supplier to fulfill the orders. This is not a reflection of the actual time your Make or Deliver processes are waiting for product to become available.

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### Hierarchy

IDNameLevelx
RS1Order Cycle Time1RS1
RS14Sourcing Cycle Time2RS14

### Process(es)

IDNameLevelx
P2Plan Source2P2
S006Negotiate3S006
S1Source-to-Replenish2S1
S101Create Schedule3S101
S10201Schedule Appointment4S10201
S10202Check-In4S10202
S10203Queue Activities4S10203
S10204Inspect Vehicle4S10204
S10205Weigh-In4S10205
S104Inspect3S104
S105Put Away3S105
S106Transfer3S106
S2Source-to-Order2S2
S201Create Order3S201
S202Create Schedule3S202
S205Inspect3S205
S206Put Away3S206
S207Transfer3S207
S3Source-to-Engineering-Order2S3
S301Identify Supply Sources3S301
S302Negotiate & Award3S302
S303Create Order3S303