What is lead time in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: lead time

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: The amount of time it takes a process to complete after initiation. In logistics, it is the amount of time between the awareness of the requirement and the receipt of goods.

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• Key Concepts: 
  Lead time is the amount of time it takes for a product to be manufactured and delivered to the customer. It is an important factor in supply chain planning and control, as it affects the availability of products and the cost of production. Lead time can be affected by a variety of factors, such as the complexity of the product, the availability of raw materials, and the efficiency of production processes.
  
  How to use it: 
  Lead time can be used to plan production schedules and ensure that products are available when needed. It can also be used to determine the cost of production, as longer lead times can increase costs due to additional labor and materials. Lead time should be monitored regularly to ensure that it is within acceptable limits.
  
  Tips & Tricks: 
  To reduce lead time, it is important to identify and address any bottlenecks in the production process. This can include streamlining processes, improving efficiency, and reducing waste. Additionally, it is important to ensure that raw materials are available when needed, as delays in obtaining materials can increase lead time.
  
  Related Information: 
  Lead time is closely related to other supply chain concepts such as inventory management, demand forecasting, and capacity planning. Understanding how these concepts interact can help improve lead time management and ensure that products are available when needed.