LEAD TIME definition: 1. the time between the design of a product and its production, or between ordering a product and…. Learn more.. Lead time is the amount of time that elapses between when a process starts and its completion. Lead time is examined closely in manufacturing, supply chain management and project management , as.
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Lead time in purchasing is the time from placing a purchase order until the order reaches the warehouse. Inventory lead time depends on supplier lead time - the more suppliers there are, the longer the lead time will be. Other types of lead time are: Customer lead time: the time it takes to fulfill a customer order.. Procurement time relates to the time it takes to assign team members to specific roles and set deadlines, which could be one day. Manufacturing time could be linked to the time it takes to undertake the data entry and calculations to produce the report, which could be 14 days. Total lead time 1 + 14 = 15 days to produce a report from request.
