demand during lead time


Also found in: Acronyms.

demand during lead time

the demand made on a product required during the delivery or manufacturing lead-time period for that product. An unexpected increase during this period can lead to an out-of-stock situation.
References in periodicals archive ?
In a cycle where the order is received in a relatively short time and the demand during lead time is low, internal storage space capacity is exceeded.
Assuming that the demand has a normal probability distribution and the average demand during lead time is the mean of the distribution, then the safety stock can be computed as safety stock = z*(standard deviation of demand during lead time).
[sigma]X = standard deviation of demand during lead time in days