lead time


Also found in: Dictionary, Thesaurus, Acronyms, Idioms, Encyclopedia, Wikipedia.

Lead Time

In supply chain management, the amount of time between a supplier receiving an order and its delivery to the distributor or customer. This is important for both custom-made products and mass production, and suppliers are expected to know the lead times for their different products. It is particularly important for just-in-time supply chains, in which each step in the supply chain is expected to know precise lead time. It is also called turnaround time.

lead time

the time between placing an order or reorder and the goods being received into stores. STOCK CONTROL systems take the lead time into account when deciding upon reorder levels, placing orders whilst there is sufficient safety stock or BUFFER STOCK to meet production requirements during the lead time. Lead time to manufacture is the time calculated to manufacture a component or final product.
References in periodicals archive ?
These levers include demand, demand variability, informational lead times, informational lead time variability, physical lead times, and physical lead time variability.
14] studied a two-echelon supply chain inventory model with controllable lead time and service level constraint in fashion supply chains and assume that the unit cost of compressing lead time follows exponential distribution and investigate the optimal ordering quantity and production quantity in the fashion supply chain by minimizing the joint total cost.
In daily operations of enterprises that design, supply, manufacture and distribute medical devices, numerous lead time drivers are built into the business processes.
Here, it's not really the technology that keeps lead times long; rather, "it has to do with backlog and risk management, capacity planning, and plant-floor organization.
While Wacker and Treleven[17] call attention to this issue, no research study has investigated the effect of commonality sources on manufacturing lead time.
Over time, customers will shift their focus on these dimensions, as they will expect better quality, service, price and lead time.
The maximum inventory level in a ROP system is equal to the physical safety stock (DL[Alpha]) + demand during the lead time (DL) + lot size (Q), if demand drops to zero immediately after having passed the reorder point, triggering a production order.
But for those cases when speed counts above all, he and Elliott note that you can compress lead times through concurrent tooling construction and product design.
The opportunity to reduce total lead time for these firms begins with the reduction of product development lead times.
Orders Double While Customers Achieve 45% to 66% Reductions in Inventory and Up to 85% Shorter Supplier Lead Times
It reads: "The concept of backlog presupposes a throughput-driven schedule where jobs are placed into production to maximize an outdated notion of manufacturing efficiency rather than to ensure the modern business imperative of customer satisfaction through on-time delivery and short lead times.
Another knock against cast components that reduced their utilization by airplane engineers was lead time.