How this calculator works
Lead time describes how long a supply chain takes to react. Order lead time covers the paperwork side: the delay before anyone actually places the order, plus the wait for the supplier to deliver. Manufacturing lead time covers the shop: pre-production work such as setup and material preparation, the production run itself, and post-production inspection and packing. Supply chain lead time looks at the whole chain from raw material to the customer, so it adds pre-production, production and distribution while leaving out the reorder paperwork that sits upstream.
Formula
order lead time = supply delay + reorder delay. Manufacturing lead time = pre-production time + production time + post-production time. Supply chain lead time = pre-production time + production time + distribution time.
Worked example
A supplier needs 14 days to deliver and the purchasing team takes 3 days to raise the order, so order lead time is 17 days. In manufacturing, 2 days of setup, a 10 day run and 2 days of inspection add up to 14 days. Adding 5 days of shipping across the chain gives a supply chain lead time of 17 days.
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Frequently asked questions
Is lead time the same as cycle time?
No. Cycle time is how long one unit takes to move through a step. Lead time is the total clock time from order to delivery, which includes waiting between steps.
Which lead time should I quote to a customer?
The customer sees the full chain, so quote supply chain lead time from the moment they order. Internal planning usually needs the manufacturing figure to schedule work centres.
Why is supply chain lead time not just the sum of every field?
Because some delays overlap. Adding the reorder delay to the manufacturing chain would count the same calendar days twice, since ordering and production happen in parallel in most supply chains.
Can lead time be negative?
No. A negative component usually means a data entry error, and the calculator rejects a negative total rather than returning a meaningless figure.