Lead Time
Lead time is the total time taken from the initiation of an order to its delivery. In logistics, lead time includes order processing, production, and transit times. Managing lead time is crucial for inventory control, customer satisfaction, and efficient supply chain operations.
Related glossary terms
Just-In-Time (JIT) inventory
Just-In-Time (JIT) inventory is a supply chain strategy that receives goods only as they are needed in production, minimizing holding costs and storage…
Actual Demand
Actual demand is the real quantity customers request in a period. It drives supply chain planning, inventory decisions, and demand forecasting in logistics.
Must-Arrive-By Date (MABD)
Must-Arrive-By Date (MABD) is the date a shipment must reach its destination, critical for coordinating time-sensitive deliveries and promotional inventory…
Advance Material Request
An advance material request orders materials before formal design release when long lead times risk production delays. It ensures key inputs arrive on time.
