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Lead Time

What Is the Meaning of Lead Time in Supply Chain?

Lead time refers to the total time taken from the moment an order is placed until the goods, such as beverages, are delivered to the customer. In supply chain management, lead time includes manufacturing, processing, packaging, and transportation time. For beverage companies, understanding lead time is critical for inventory management, forecasting demand, and ensuring timely deliveries. The meaning of lead time in the supply chain context emphasizes its role in planning and optimizing operations. A shorter lead time enables faster response to market demand, while longer lead times may impact stock levels and customer satisfaction.

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