page_title: Lead time
section_title: Order lead time
hierarchical_section_title: Lead time / Order lead time
caption_attribution_description: English: The image shows the different types of Order Lead Time that exist over a time horizon.
context_page_description: A lead time is the latency between the initiation and completion of a process. For example, the lead time between the placement of an order and delivery of new cars by a given manufacturer might be between 2 weeks and 6 months, depending on various particularities. One business dictionary defines "manufacturing lead time" as the total time required to manufacture an item, including order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time. For make-to-order products, it is the time between release of an order and the production and shipment that fulfill that order. For make-to-stock products, it is the time taken from the release of an order to production and receipt into finished goods inventory.
context_section_description: When talking about Order Lead Time (OLT) it is important to differentiate between the definitions that may exist around this concept. Although they look similar, there are differences between them that help the industry to model the order behavior of their customers. The four definitions are : 
  The Actual Order Lead Time  (OLTActual) The order lead-time, refers to the time which elapses between the receipt of the customer's order (Order Entry Date) and the  delivery of the goods." 
  The Requested Order Lead Time  (OLTRequested) represents the time between the Order Entry Date and the customer requested delivery date; this measurement could help the company to understand the order behavior of the customers and help to design profitable models to fulfill customer needs.
  The Quote Order Lead Time  (OLTQuote) is the agreed  time between the Order Entry Date and the supplier's committed deliver date of goods as stipulated in a supply chain contract.
  The Confirmed Order Lead Time (OLTConfirmed) represents the time between the Order Entry Date and the by the supplier confirmed delivery date of goods.
caption: OLT Definitions[9]
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