lead time
noun
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Definition of lead time
Examples of lead time in a Sentence
Recent Examples on the Web
Benefiting from a technicality Coleman ran a world-leading time of 9.81 seconds in the Diamond League in California in June -- a time just 0.02 seconds slower than his personal best. — Ben Morse, CNN, "Christian Coleman: Athletes criticize 'loophole' after sprinter avoids ban," 3 Sep. 2019 Given the lead time required to design a new car, VW will begin developing, in the next few years, what will be its last-ever vehicle powered by an internal-combustion engine—in the lingo, an ICE. — Fortune, "Electric Car Gold Rush: The Auto Industry Charges Into China," 20 Aug. 2019 There are long lead times in retail, and Soltau’s team impact won’t begin to be measured until the first quarter. — Maria Halkias, Dallas News, "Where does J.C. Penney's turnaround stand? It's testing new ideas in Texas," 26 July 2019 The Blues held the advantage Wednesday night for a total of 43:13 and finished with a total 138:56 lead time over the seven games. — Kevin Paul Dupont, BostonGlobe.com, "What the Blues did right was score," 12 June 2019 With high costs and long lead times, there is a risk of creating orphaned lanes. — Dp Opinion, The Denver Post, "Letters: Scooters should slow their roll; It’s about moral — not mental — health; Leading fight for fair elections (8/14/19)," 14 Aug. 2019 The long lead time for the negotiations to secure the location meant that embroideries and some of the other astonishing techniques used in the vast collection of a staggering 125 looks could be put in production many months in advance. — Hamish Bowles, Vogue, "Dolce & Gabbana Stage an Epic Alta Moda Show in Sicily’s Valley of the Temples," 6 July 2019 Forecasters seeking to predict elections with ample lead time may turn to information other than polling for more accuracy. — The Economist, "When to pay attention to 2020 forecasts," 26 July 2019 The difference with strikes, as opposed to other flight disruptions like weather, is that there's often a fair amount of lead time for affected travelers to make alternate plans. — Jessica Puckett, Condé Nast Traveler, "How to Deal With Flight Cancellations Due to Strikes," 18 July 2019These 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.
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More Definitions for lead time
lead time
nounFinancial 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.
Source: Investing Answers
lead time
noun
English Language Learners Definition of lead time
See the full definition for lead time in the English Language Learners Dictionary