Definition
Lead time
Lead time is the number of days between placing an order with a supplier and having the stock on the shelf ready to sell.
It includes the supplier's processing time, shipping and your own receiving. Lead time is the second input to a reorder point, and the one most people underestimate; use the slowest recent delivery, not the fastest.
In Inventory Now
Set low-stock thresholds in days so the alert fires with your lead time to spare.
Reorder point calculatorRelated terms
