A lead time calculator estimates how long it takes from placing an order to receiving it, and helps businesses decide when to reorder. Enter the supplier processing time, production time and shipping time, and it calculates total lead time and a reorder point based on daily demand.
Total lead time = order processing time + production time + shipping time (+ any inspection or customs time). For example, if a supplier takes 2 days to process, 10 days to produce and 6 days to ship, the lead time is 18 days.
The reorder point tells you when to place a new order so you don’t run out: reorder point = (average daily demand × lead time) + safety stock. If you sell 25 units a day and keep 150 units of safety stock, the reorder point for an 18-day lead time is (25 × 18) + 150 = 600 units. When inventory drops to 600, it’s time to reorder.
Tips: use real historical data for lead times, not just quoted times, since delays happen. Increase safety stock for unreliable suppliers or seasonal spikes. Shorter lead times reduce how much inventory you need to hold, which frees up cash. In manufacturing, lead time can also refer to the time from a customer’s order to delivery, which includes your own production steps.
Tips for getting accurate results from the Lead Time Calculator: double-check that every input uses the right units, enter numbers without commas or symbols, and run the calculation a second time with a quick estimate in your head to confirm the answer looks reasonable.
How to use the Lead Time Calculator on Minedit: enter your values in the fields, press calculate, and review the step-by-step breakdown under the result. If something looks off, change one input at a time to see how it affects the answer, which is also a great way to learn the math behind it.
Learn more on Wikipedia’s lead time article. Find Amazon FBA, business valuation and percent growth calculators on Minedit.