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
Service Parts Profit Optimization
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