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Inventory · Definition

Lead Time

The total time between placing an order and receiving the goods.

Lead time is the elapsed time from when you raise a purchase order to when the stock is received and available to use or sell. It includes supplier processing, manufacturing and transit.

Lead time variability — not just its average — is what drives the need for safety stock. Tracking actual versus promised lead times is a core supplier-performance signal.

Also called

  • replenishment lead time

See it in AWRA OpsHub

Supplier Performance

Related terms

Safety Stock

A buffer of extra inventory held to protect against demand or supply variability.

Reorder Point

ROP

The stock level that triggers a new purchase or production order.

Supplier Scorecard

A structured rating of a supplier’s delivery, price and quality performance.

More in Inventory

ABC Analysis Asset Tracking Available to Promise (ATP) Backorder Barcode Carrying Cost Consignment Inventory Cycle Count

Lead Time is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 257 glossary terms describe things the platform actually does.

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