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: -Delivery lead time is the period between when an order is placed and when that order is delivered. Delivery lead time tells a company how far in advance it needs to place an order for the delivery to arrive on time. It is one of the most important metrics for managing supply chains and inventory.

Detailed explanation-3: -What does lead time mean? Simply put, lead time refers to the ‘latency’ (time interval) between the start and completion of a certain task. It is most often used in supply chain circles and is an important measure for all product-based businesses.

Detailed explanation-4: -Usually lead time in procurement is measured in months. Purchasing lead time starts when the goods or services are ordered and ends when they are received. This lead time includes availability confirmation, ordering, order acknowledgement, shipping notice, receipt of goods or service, invoice recording and payment.

Detailed explanation-5: -The lead period in supply chain management is the time that elapses between when you place an order for supplies and when the supply delivery arrives from the supplier. Lead time is a term used in project management to describe how long it takes to accomplish a particular collection of activities.