Lead time is defined as the time between placing an order and receiving it.

Lead time is defined as the time between placing an order and receiving it.

• A. True
• B. False
• C. Only applicable to domestic supply.
• D. It includes processing time.

Answer: (A)

Lead time is the total duration from when you place an order to when you actually receive the goods. That span covers everything that happens after the order is placed: order processing, procurement or production, handling, and transportation to you. Because it measures the full interval up to receipt, the statement is true. Lead time applies to both domestic and international orders, so it isn’t limited to domestic supply. Processing time is included as part of the overall lead time, since the clock runs from order placement through to delivery.

Lead time is the total duration from when you place an order to when you actually receive the goods. That span covers everything that happens after the order is placed: order processing, procurement or production, handling, and transportation to you. Because it measures the full interval up to receipt, the statement is true. Lead time applies to both domestic and international orders, so it isn’t limited to domestic supply. Processing time is included as part of the overall lead time, since the clock runs from order placement through to delivery.