Definition The total time between an order being placed and it being received.
Example An order placed on 1 March and delivered on 15 March has a lead time of 14 days.
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Why it matters Customers and planners depend on knowing how long things take.
Where it is used Supplier agreements, planning tools and customer promises.
How to calculate it Delivery date − order date
Worked example An order placed on 1 March and delivered on 15 March has a lead time of 14 days.
