Method for generating prediction model for supply lead time of parts

Abstract

Provided is a method for generating a lead time prediction model including: receiving input data from a user; identifying a final part corresponding to the input data; identifying one or more components that constitute the final part; classifying the identified one or more components into in-house production parts, which are produced in-house, and ordered parts, which are procured from suppliers; determining a lead time for the in-house production parts; obtaining first data including at least price data and historical lead time data, for each of the ordered parts; generating a model for generating a predicted lead time for at least one of the final part and the ordered parts, based on the obtained first data; and optimizing the model based on at least one of fixed costs, inventory costs, ordering costs, backlog costs, and demand loss costs.