ENTREPRENEURSHIP

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: -In manufacturing, lead time often represents the time it takes to create a product and deliver it to a consumer. Lead time is calculated by adding any combination of the number of days to procure materials, manufacture goods, and deliver finished products.

Detailed explanation-3: -Delivery lead time is the time between when an order is placed and when it is delivered. If a business knows how long a delivery lead time will be, it can use that information-and its knowledge of when it need to receive something-to figure out when to place an order.

Detailed explanation-4: -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.