Examples of lead time in a Sentence
We will need at least six months lead time before production begins.
Recent Examples of lead time from the Web
Historically, launching satellites into space has been an expensive endeavor that requires a lot of lead time, said Scott Wierzbanowski, from DARPA.
Greenberg said much of the reason for lead time is logistical: the facilities are operated by federal contractors and government officials should be present for a congressional inspection.
Brebeuf's Nakita Turner-Lee lowered her state-leading time in the 100-meter hurdles to 14.10, tying a sectional record.
With this demand, the company is encouraging businesses to plan ahead and factor in lead times of as many as 10 to 12 weeks depending on the size of the order.
The collaboration between the two countries and long lead time is largely a function of the growing complexity of modern military equipment, which can take billions of dollars and a decade or more to develop.
The company prides itself on the fact that nearly 80 percent of its products are available with a five-day lead time or less.
The index's readings for Houston's employment, lead times, production and purchases, indicators tied to economic activity, sped up last month.
Performance of four underlying indicators that have the strongest correlation with current economic activity —employment, production, lead times and purchasing —showed additional improvement.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'lead time.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of LEAD TIME
What It Is
Lead time is the amount of time between ordering something and receiving it.
How It Works
For example, let's say Company XYZ makes and sells widgets. It has a customer, ABC Company, that wants to buy 10,000 widgets to put in its retail stores in October for the Christmas season.
It takes two weeks to get the widget parts and a week to assemble 10,000 units, so Company XYZ has a lead time of about a month. That means that it must get the order from ABC company no later than September 1 in order to make the delivery on time.
Why It Matters
Lead time is a crucial part of managing a manufacturing business or any business that involves waiting for supplies or products to arrive. Generally, the lower the lead time, the more flexible a company is and the faster it can respond to changes in trends. However, shorter lead times can cost more money if the buyer has to pay for overtime, expedited shipping costs, or other rush charges. This in turn makes it difficult to say whether shortening lead time will increase profits, though it usually will increase customer satisfaction.
LEAD TIME Defined for English Language Learners
Definition of lead time for English Language Learners
: the time between the beginning of a process or project and the appearance of its results
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