Lead Time Demand Concept

Lead Time Demand is the demand expected to occur during the lead time for the part.

Examples

Suppose our annual demand level is 1 and lead time is 365 days. The Lead Time Demand will be 1.

Suppose our annual demand level is 2 and our lead time is 365 days. The The Lead Time Demand is 2.

Suppose our annual demand level is 5 and our lead time is 700 days. The The Lead Time Demand will be 5*700/365 or 9.58.

Related Concepts, Formulas, and Guides

For more concepts, guides, and formulas related to Service Parts Profit Optimization visit the Firefly Semantics Service Parts Profit Optimization Help Center:

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Ole Ersoy

Ole Ersoy

Founder of Firefly Semantics Corporation