lead time

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
This study investigates how effective the different commonality measurements (DCI and TCI) are for predicting manufacturing performance using manufacturing lead time as its performance measure.
In the production of individually custom engineered electronic control systems (high dollar value/low volume), manufacturing lead time can range from ten days to two months, largely due to the custom engineering involved.
Since implementing the changes, manufacturing lead times for spare UV lamps have been reduced by as much as 30%, meaning customers now get even better quality lamps and better service levels.
Manufacturing lead times reduced from six weeks to one week and delivery performance to commit reached an average of 99%.
This enables quicker setup time, and ultimately shortens manufacturing lead times.
The CNC drilling machine will help reduce manufacturing lead times and reduce the cost of spinnerets.
Manufacturing lead times dropped 90%, inventory turnover jumped 50% and production capacity was freed up by about 25% each year.
The bright side of this situation for many Vietnamese plants (and maybe in yore' plant) is that there is much room for improvement and for shorter manufacturing lead times (currently 3-4 weeks).
"Based on the current order book and manufacturing lead times, the Company forecasts higher net sales in the last quarter of the year than in the third quarter.
However, back here on Earth, manufacturing lead times will continue to become shorter and shorter.
Some of the benefits include reduced manufacturing lead times, shorter customer order response times, lower financial risk since there are reductions in capital requirements, warehousing, and inventory costs.
The auto industry's long manufacturing lead times afford a peek into the future, and it appears Dana has reason to be optimistic about its own.

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