Who this applies to#
- Use lead time with a named start and finish, such as placing a supplier order and receiving sellable stock
What Lead time requires#
- Define the process boundary before comparing lead times or promising availability
Shopify
Shopify inventory planning uses supplier lead time as an input to low-stock and reorder work
What this does not require#
- Lead time does not equal the shopper's delivery estimate unless the same start and finish are used
Common mistakes#
- Using supplier lead time and customer delivery time interchangeably
- Planning from an average without allowing for variability
Lead time checklist#
- Name the start
- Name the finish
- Measure the elapsed time
- Add operating buffer