Definition, Meaning & Synonyms

lead-time

Noun

/ˈliːd taɪm/

Definition

The duration between the initiation of a process or order and its completion or delivery.

Examples

The lead-time for custom orders can vary significantly.
In manufacturing, reducing lead-time can enhance efficiency and customer satisfaction.
Businesses must account for lead-time when planning inventory.

Meaning

Lead-time refers to the period that elapses from the moment an order is placed until the product or service is delivered. It is an essential concept in supply chain management, indicating how quickly a company can respond to customer demands.