MANAGEMENT

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: -Lead time in shipping is the period of time between when an order is first received and when it reaches the customer. It includes the processing of the order and then the time spent delivering a package.

Detailed explanation-3: -“Lead time” is a term borrowed from the manufacturing method known as Lean or Toyota Production System, where it is defined as the time elapsed between a customer placing an order and receiving the product ordered.

Detailed explanation-4: -Order lead time is the amount of time it takes to fulfill orders. More specifically, it’s the time (in days) from when an order is placed until it’s ready for delivery. Order cycle time is housed within lead time and describes the time it takes to process and ship out an order, excluding shipping time.

Detailed explanation-5: -There are basically four types of lead time: customer lead time, material lead time, factory/production lead time, and cumulative lead time.