What is lead time in SAP SCM-IBP - Integrated Business Planning?

SAP Term: lead time

• Component: SCM-IBP

• Component Name: Integrated Business Planning

• Description: The planned amount of time it takes to complete a certain process. Lead times can be defined for processes such as the following: Transporting a product from one location to another location Manufacturing products at a location Purchasing goods from a supplier

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• Key Concepts: 
  Lead time is the amount of time it takes for a product to be produced and delivered to the customer. It is an important factor in supply chain management, as it affects the availability of products and services. In SAP Integrated Business Planning (IBP), lead time is used to calculate the optimal production and delivery schedules for a given product or service. 
  
  How to use it: 
  In SAP IBP, lead time is used to calculate the optimal production and delivery schedules for a given product or service. Lead time can be used to determine the best time to start production, when to order materials, and when to deliver products. It can also be used to identify potential bottlenecks in the supply chain and adjust production schedules accordingly. 
  
  Tips & Tricks: 
  Lead time should be monitored regularly to ensure that production and delivery schedules are accurate and up-to-date. It is also important to consider other factors such as customer demand, inventory levels, and supplier availability when calculating lead time. 
  
  Related Information: 
  Lead time is closely related to other concepts such as inventory management, supply chain optimization, and demand forecasting. Understanding these concepts can help you better manage your supply chain and optimize your production and delivery schedules.