Enter the sourcing time, production time, and delivery time into the calculator to determine the total lead time.
Lead Time Formula
The following formula is used to calculate the lead time.
LT = ST + PT + DT
Variables:
- LT is the total lead time (days)
- ST is the sourcing time, the time taken to source raw materials (days)
- PT is the production time, the time taken to manufacture the product (days)
- DT is the delivery time, the time taken to deliver the product to the customer (days)
To calculate the lead time, add the sourcing time, the production time, and the delivery time. This will give you the total time from the initiation of the production process to the delivery of the product to the customer.
What is a 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.
How to Calculate Lead Time?
The following steps outline how to calculate the Lead Time using the given formula:
- First, determine the sourcing time (ST) in days.
- Next, determine the production time (PT) in days.
- Next, determine the delivery time (DT) in days.
- Finally, use the formula LT = ST + PT + DT to calculate the total lead time (LT) in days.
- After inserting the values of ST, PT, and DT into the formula, calculate the result.
Example Problem:
Use the following variables as an example problem to test your knowledge:
Sourcing time (ST) = 5 days
Production time (PT) = 10 days
Delivery time (DT) = 3 days
