MANAGEMENT

Detailed explanation-1: -Lead time is a span of time required to perform a process (or a series of operations). In a logistics context, it is the time between the recognition of the need for an order and the receipt of goods.

Detailed explanation-2: -What is lead time ? Lead time is the total time that elapses between an order’s placement and its receipt.

Detailed explanation-3: -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-4: -The replenishment lead time represents the total period of time which is required to procure or manufacture an item. The replenishment lead time is mainly used by the availability check to calculate the material availability date.

Detailed explanation-5: -In short, lead time is the period of time spent by the production system, in order to transform inputs into finished products, ready for delivery. This process involves a number of crucial steps in a business, such as procurement management, supplier management, and supply chain management.