Lead time Calculator

Our lead time calculator helps to calculate the time it takes for a product to be manufactured and delivered.

What Is Lead Time?

It is the length of time between the production and delivery of a product. Businesses consider lead time in project management, manufacturing, and supply chain management during different stages. These include 

• Pre-processing
• Processing, and
• Post-processing

The procedure is followed to identify any inefficiencies in production and reduce the lead time so that operations can be improved.

How to Calculate Lead Time?

Formulas to calculate lead time include:

Manufacturing Lead Time:

Lead time = Pre-Processing + Processing + Post-Processing

Where;

• Pre-Processing: Time needed for preparing supplies and managing order

• Processing: The time during which an order is prepared

• Post-Processing: Delivery time of product

Example - Lead Time:

What is the lead time for a business that completes a production corresponding to the following times?

• Pre-Processing: 24 days 

• Processing: 6 days

• Post-Processing: 3 days

Solution:

Using manufacturing lead time formula:

Lead time = Pre-Processing + Processing + Post-Processing

Inputting values in it,

Lead time = 24 days + 6 days + 3 days

Lead time = 33 days

Supply Chain Management Lead Time:

Lead Time = Supply Delay + Reorder Delay

Where;

• Supply Delay: Time between an order is placed and supplies are arranged
• Reorder Delay: Waiting time before you reorder the supplies again

Example:

Scenario:

• Supply Delay: 5 days (time for the supplier to process and fulfill the order)
• Reorder Delay: 2 days (time from when the order is placed until it's officially processed by the supplier)

Calculation:

Lead Time = Supply Delay + Reorder Delay

Lead Time = 5 days + 2 days

Lead Time = 7 days

Some Other Types of Lead Time: