Lead time is the total time elapsed between the initiation of a manufacturing process and its completion.
Lead time encompasses the period required to prepare and process orders, manufacture components or products, and deliver them to the next stage or final destination. It is critical in planning and optimizing inventory levels to minimize delays and inefficiencies in the supply chain.
A lead time of 14 days is needed to produce a batch of industrial bearings.
Used in the automotive industry to manage inventory for assembling vehicle transmissions.
A lead time of 21 days is required for the custom fabrication and delivery of steel beams for construction projects.
Applied in the construction industry, particularly in the buildup phase where materials must be aligned with project timelines.