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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.

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About 5–10 minutes · no sign-up needed

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

Try each one in your head first, then open the answer.

1. If Canada orders today, how many weeks will it be out of stock?
Lead time 5 − weeks of supply 2 = 3 weeks
2. How many sales could Canada lose in that gap?
3 weeks × 150 a week = 450 units
3. How can Canada get back in stock sooner?
Transfer stock from a market with excess, like Germany

Learn 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.

Try this lesson free →
About 5–10 minutes · no sign-up needed