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.

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 ?
Sofas with shorter lead times -- and the possibility of returning them -- do exist.
If lead time length is variable with expected length [lambda] and variance [omega], and if expected demand is [bar.x] with variance v, then expected lead time demand [[bar.x].sub.L] and its variance [v.sub.L] over lead time, can be calculated using following expressions:
The multiparameter EEW algorithm has been used to calculate the lead time for Northern India cities such as Dehradun, Roorkee, Hardwar, Muzaffarnagar, Meerut, and Delhi.
The salient boundary conditions in the order-crossing literature are the distributional assumptions underlying demand and lead time. Hence, table 1 displays the literature mapped against the distributional assumptions of demand and lead time.
When a customer arrives at the system whose state is i, the system quotes him/her lead time [d.sub.i] which is an estimated lead time and is based on the inventory level i.
In Figure 1, [x.sub.a](k) and [x.sub.b](k) denote manufacturer (a)' inventory level and retailer (b)' inventory level at period k, respectively, [u.sub.a](k) and [u.sub.a](k - [[tau].sub.a]) denote the productions manufactured by manufacturer (a) at period k and with the production lead time [[tau].sub.a], respectively, [u.sub.b](k) and [u.sub.b](k - [[tau].sub.b]) are the numbers of products ordered by retailer (b) at period k and with the ordering lead time [[tau].sub.b], respectively, and [w.sub.b](k) is the customers' demands at period k.
For example, researchers have shown that linking lead times between various production systems can lead to reduced variability in the total lead time of the system.
The definition of lead time is integral to the theme of QRM.
A team of specialists then created a tailored end-to-end procurement-to-pay solution with optimised processes to enhance internal procurement procedures, remove existing inefficiencies, reduce wastage and delivery lead times as well.
Adding the longest path of decoupled lead times still produces a similar lead-time number as the coupled system, but the crucial difference is that the customer reliably experiences a tremendously shorter lead time.
The PCA is performed on the observations and on each forecast system and lead time separately to take into account the individual system's systematic errors (Doblas-Reyes et al., 2003; Philippon et al., 2010).
"We remain committed to pro- viding Sailors with as much information and lead time as possible," said Ferguson.