Lead Time Calculator

The lead time calculator is an inventory management tool to calculate the lead time for ordering, making sales, and preparing sales orders.

What is Lead Time?

Lead time is the phase or a period between the starting and ending of a process. The estimated lead time is necessary to manage the manufacturing, ordering, and Supply chain.

Businesses are curious about calculating the lead time for managing various processes. You can take inventory decisions and can manage various activities just use the online lead time calculator. It makes it possible to reduce the cost and activities.

How to Calculate Lead Time?

For managing inventory, there are 3 types of lead time you need to estimate:

• Manufacturing Lead Time
• Ordering Lead Time 
• Supply Chain Management Lead Time

Manufacturing Lead Time:

Inventory management can’t be evaluated by figuring out the lead time. There are 3 stages of the lead time:

Pre-Production Time: 

It is the stage for handling the order, making a sales order, and preparing the supplies.

Production Time:

Production time is the time for placing an order and the time fulfilling the client’s requirements.

Post-Production Time:

Post-production time is the stage for delivering the product to the consumer, including the shipment time.

The estimated lead time does include all three stages. Our lead time calculator is a simple way to prepare the purchase order. Purchasing is the key to inventory management for a company.

Estimated Lead Time Formula:

Inventory management is a significant element in supply chain management. The leadtime calculation is a mere addition of all the stages of the production from pre-production to post-production. 

Estimated Lead Time = Pre-Production time + Production Time + Post-Production Time

Ordering Lead Time: 

In the ordering lead time calculation, a company must calculate the supply delay and the reorder delay of the purchase order. It is the time between the order placed and the order received.

Lead Time  = Order Delivered – Order Received

The estimated lead time between the delivering and receiving of an order can be estimated by the delivery time calculator.

Supply Chain Management Lead Time:

In the supply chain management is the essence of inventory management. The supply chain can affect the ordering and carrying costs of an inventory. For managing your inventory the lead calculator is a simple way to identify the inventory.

Lead Time = Supply Delay + Reorder Delay

Working of Lead Time Calculator:

The lead-time calculator can be used by the following steps given below:

Input:

• Choose the manufacturing, order, or supply chain management
• Enter the pre-production time, post-production time, and production time
• Hit the calculate button 

Output:

• Lead time 

References:

From the source of Wikipedia: Lead time, Estimated Lead Time
From the source of Sortly.com: How to find Lead Time, How to find Lead Time