Delivery Lead Time Formula:
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Delivery lead time measures the time between when an order is placed and when it is delivered. It's a critical metric in supply chain management and customer service.
The calculator uses a simple formula:
Where:
Explanation: The difference between these two dates gives the total lead time in days.
Details: Understanding lead time helps businesses improve inventory management, set accurate customer expectations, and identify supply chain bottlenecks.
Tips: Enter both dates in the format YYYY-MM-DD. The calculator will compute the difference in days between these dates.
Q1: Does this include weekends and holidays?
A: Yes, the calculator includes all days between the two dates.
Q2: What's considered a good lead time?
A: This varies by industry. Shorter lead times are generally better, but must be balanced against costs.
Q3: Should I use business days instead?
A: For business-day calculations, you would need to exclude weekends and holidays.
Q4: How can I reduce lead time?
A: Strategies include supplier optimization, inventory management, and process improvements.
Q5: Is lead time the same as delivery time?
A: Delivery time typically refers just to the transportation time, while lead time includes the entire process from order to delivery.