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: -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: -Lead time (LT) is calculated as the total time it takes to pick, pack, ship, and deliver products. Procurement time can include the amount of time it takes to pick and pack goods. What is lead time gap? Lead time gap is the difference between logistics lead time and customer order cycle time.

Detailed explanation-5: -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.