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Answer Posted / goldie sahni
Lead time in SCM refers to the amount of time elasped between the order and delivery of a product.For a manufacturing company,the difference between the time when it orders any raw material or subassemblies from a supplier for manufacturing its products and the time when it actually receives these supplies would constitute the lead time.Lead times are usually of order of weeks or months in manufacturing,that's why manufacturing firms have to plan for production schedule keeping in view the lead times for raw materials or subassemblies or constituent parts(automotive parts)as not accounting for lead times can have an adverse effect on the ability of a firm to deliver their manufactured products on time to their customers.
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