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Retail Supply Chain lesson
Lead time and back-in-stock dates
Lead time is how long an order takes to arrive. Compare it with weeks of supply.
Try this lesson free →The idea
Lead time is how long an order takes to arrive. Compare it with weeks of supply:
Formulas
Lead time − ( On hand ÷ Weekly sales )Key points
Lead timeWeeks from placing an order to having the stock.
Back-in-stock dateToday + lead time, for an order placed today.
Weeks out of stockLead time − Weeks of supply, when the lead time is longer.
Report both dates: when it runs out, and when it's back in stock.
Practice
1. If Canada orders today, how many weeks will it be out of stock?
Lead time 5 − weeks of supply 2 = 3 weeks2. How many sales could Canada lose in that gap?
3 weeks × 150 a week = 450 units3. How can Canada get back in stock sooner?
Transfer stock from a market with excess, like GermanyLearn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.
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