Lead Time Calculator

Formula

To calculate the Lead Time:

\[ LT = ST + PT + DT \]

Where:

\(LT\) is the total lead time (days)
\(ST\) is the sourcing time (days)
\(PT\) is the production time (days)
\(DT\) is the delivery time (days)

What is Lead Time?

Lead time is the period between the initiation and completion of a production process. It includes the time taken to source raw materials, manufacture the product, and deliver it to the customer. In supply chain management, reducing lead time can improve efficiency and customer satisfaction.

Example Calculation 1

Let's assume the following values:

Sourcing Time (\(ST\)) = 10 days
Production Time (\(PT\)) = 15 days
Delivery Time (\(DT\)) = 5 days

Using the formula:

\[ LT = 10 + 15 + 5 = 30 \text{ days} \]

The total lead time is 30 days.

Example Calculation 2

Let's assume the following values:

Sourcing Time (\(ST\)) = 8 days
Production Time (\(PT\)) = 12 days
Delivery Time (\(DT\)) = 10 days

Using the formula:

\[ LT = 8 + 12 + 10 = 30 \text{ days} \]

The total lead time is 30 days.