Glossary
Lead Time
Lead time is the total duration between placing a purchase order with a supplier and receiving the goods into inventory.
Full explanation
Lead time directly affects reorder point calculations and safety stock levels — longer or more variable lead times require higher safety stock buffers. Understanding and tracking lead time variability is essential for maintaining service levels without overstocking.
Stocklyst incorporates lead time variability into its safety stock formula (Graves 1999), meaning items with unreliable suppliers automatically receive larger safety buffers. Lead time can be tracked as a custom field per item or supplier in Stocklyst, and the calculation engine uses this data to produce more accurate reorder points.
How Stocklyst handles this
Stocklyst factors lead time variability directly into the Graves 1999 safety stock formula. Items with longer or more variable lead times automatically receive larger buffers, and lead time data can be maintained per item or per supplier for precise calculation.
Related use cases
Put lead time management on autopilot
Stocklyst calculates stock levels automatically using research-backed formulas, so you can focus on running your business instead of managing spreadsheets.
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