Lead time comprises which components?

Lead time comprises which components?

• A. Order processing time
• B. All of the above
• C. Supplier lead time
• D. Transit time

Answer: (B)

Lead time is the total time from when you place an order to when the goods are received. It includes all the stages that delay delivery: the order processing time (preparing and approving the order), the supplier lead time (time the supplier spends producing or sourcing the item after the order is placed), and the transit time (moving the goods from supplier to you). Since lead time is the sum of these stages, the best answer is the one that covers all components. The other options refer to individual parts, but they don’t account for the entire duration by themselves.

Lead time is the total time from when you place an order to when the goods are received. It includes all the stages that delay delivery: the order processing time (preparing and approving the order), the supplier lead time (time the supplier spends producing or sourcing the item after the order is placed), and the transit time (moving the goods from supplier to you). Since lead time is the sum of these stages, the best answer is the one that covers all components. The other options refer to individual parts, but they don’t account for the entire duration by themselves.