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Concepts

Lead Time

Lead Time: The time between placing an order and receiving the goods.

Why lead time matters

If a supplier takes 14 days to deliver, a team needs enough stock to cover those 14 days plus a buffer for uncertainty.

Supplier lead time vs real lead time

Supplier quotes are often optimistic. Use observed lead time from recent orders when calculating reorder points.

How to reduce lead-time risk

Track supplier performance, keep safety stock for critical items, and set low-stock alerts early enough to cover delays.

Lead Time FAQ

Common questions about this inventory term.

Lead time is the time between placing an order and receiving usable stock.