Short and sweet: Lead time

The lead time is generally understood to be the time required to prepare an action. In transportation planning, this includes, for example, the time required to prepare the transport. In procurement and production planning, the period of time until the order or production order is triggered. Just like the goods receipt processing time or a safety time, the lead time extends the time it takes to replenish a product. It therefore has a stock-increasing effect on materials in stock.

Our tip:

The term is used differently in different ERP or merchandise management systems. In some systems, the lead time is preset with a minimum value, in others it only exists for production. When using the lead time, always pay attention to the system-specific definition.

The lead time data field in ERP systems is often used to incorporate hidden securities in scheduling. Therefore, make sure that the times entered here are really required and realistic.

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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