ECONOMICS

Detailed explanation-1: -The term purchase order lead time (POLT) refers to the number of days it takes between the time that a company orders production inputs and the time those items arrive at the manufacturing plant. Put simply, a purchase order lead time is the estimated time it takes to receive an order after it is placed.

Detailed explanation-2: -The customer lead time is the amount of time between when a customer places an order and when the customer receives the product. This includes the time between when a customer places an online order and the company receives the order confirmation.

Detailed explanation-3: -Lead time consists of: Preprocessing Lead Time (also known as “planning time” or “paperwork"): the time required to release a purchase order (if you buy an item) or create a job (if you manufacture an item), from the time you learn of the requirement.

Detailed explanation-4: -Lead time (LT) is calculated as the total time it takes to pick, pack, ship, and deliver products. Procurement time can include the amount of time it takes to pick and pack goods. What is lead time gap? Lead time gap is the difference between logistics lead time and customer order cycle time.

Detailed explanation-5: -Your delivery lead time will be the time required to process their order, pick, pack, and ship the order, plus the time required for the truck to deliver the product to your customer’s receiving dock, or front porch. Short delivery lead times mean more satisfied and loyal customers.