Lead time is the time between when an item is ordered from the supplier (or warehouse), until it is received and is available for consumption.
Where is Lead time sourced?
Import from ERP by item / location
Import from ERP by supplier
Measured in the App from completed deliveries
Manually set by supplier in the App
It is important that the lead time data is accurate as it is an input that affects the App's calculated safety stock, model stock level, ordering levels, as well as when an order will be placed.
The lead time, safety stock and replenishment cycle within the app are in days – this is essential in order to deal appropriately with future demand, which may be seasonal.
For example: 10 days of safety stock out of season might equate to 5 units while 10 days in peak season might equate to 300 units. Using days is key to computing dynamic optimal levels that react to changes in demand.
In order to decide WHEN to order and HOW MUCH to order, the “days” need to be converted to units so they can be tested against your available on hand stock.