ERP & MRP Planning worked example

Purchase Order Cycle Time with requisition and approval time of 5 days: a worked example

Push requisition and approval time up to 5 days and the picture changes. This example computes every intermediate figure at that operating point. a purchasing manager needs realistic procurement cycle time for MRP planning

The inputs for this scenario

  • Requisition and approval time: 5 days (raised for this scenario; the documented default is 2)
  • Supplier confirmation and production time: 12 days (unchanged)
  • Transit and customs time: 5 days (unchanged)
  • Receiving and inspection release time: 2 days (unchanged)

Working through the calculation

  • Applying the documented formula (PO cycle time = approval time + supplier confirmation/production time + transit time + receiving/inspection release time) to the inputs above produces each figure below.
  • At this operating point the engine returns 24 days for purchase order cycle time, the number this scenario is built around.
  • At this operating point the engine returns 5 days for requisition and approval time.
  • At this operating point the engine returns 12 days for supplier confirmation and production time.
  • At this operating point the engine returns 7 days for transit, receiving, and release time.

How this compares with the baseline

  • Against the tool's baseline example, where requisition and approval time sits at 2 days and the headline result is 21 days, this scenario comes in 14.29% above the baseline at 24 days.
  • It sums the four PO stages, including requisition and approval, supplier confirmation and production, transit and customs, and receiving and inspection release, into a total cycle time in days. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Purchase order cycle time: 24 days (headline result)
  • Requisition and approval time: 5 days
  • Supplier confirmation and production time: 12 days
  • Transit, receiving, and release time: 7 days

Run it with your numbers

  • Every input above is editable in the live Purchase Order Cycle Time calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.