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: -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: -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” 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-5: -What is lead time? Lead time is the time between when a project commences and when your team completes it. The term is used in almost every industry, however, for project management, lead time carries additional significance.