What is negative lead time in SAP PP-MRP - Material Requirements Planning?

SAP Term: negative lead time

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The number of days before the production start date for a higher-level assembly when a lower-level component must be made available. Lead time - positive value Components can be obtained after production starts. Lead time - negative value Components must be available before production starts.

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• Key Concepts: 
  Negative lead time is a term used in SAP's Material Requirements Planning (MRP) component. It is the amount of time between when a material is ordered and when it is received. A negative lead time indicates that the material will be received before it is ordered. 
  
  How to use it: 
  Negative lead time can be used to plan for materials that are already in stock or that can be quickly obtained. This allows for faster production and delivery of goods. It also helps to reduce inventory costs by ensuring that materials are not overstocked. 
  
  Tips & Tricks: 
  Negative lead time should be used with caution, as it can lead to overstocking of materials if not managed properly. It is important to monitor the inventory levels and adjust the lead time accordingly. 
  
  Related Information: 
  Negative lead time is closely related to the concept of safety stock, which is an additional amount of inventory kept on hand to ensure that production does not suffer due to unexpected delays in obtaining materials.