What is Lead Time?
Lead Time is the time between placing a purchase order (or starting production) and receiving the completed goods — a key input for inventory reorder planning.
Types of Lead Time
Supplier Lead Time: days from PO placement to delivery at your warehouse. Manufacturing Lead Time: days from work order creation to finished goods. Procurement Lead Time = Supplier Lead Time + internal approval time. Customer Lead Time = days from order to customer delivery. Shorter lead times allow lower safety stock.
Lead Time in ERPNext
Set Supplier Lead Time on the Item master's "Supplier Details" tab per supplier. ERPNext uses this to calculate the "Required by Date" on Material Requests generated by the Production Plan or reorder level alerts. This ensures purchase orders are placed early enough to avoid stockouts.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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