Safety Lead Time

Planning buffer that offsets required receipt dates earlier than actual need to protect against time uncertainty.

Examples

01The planner sets a safety lead time of 2 days for a supplier that is often late, so material is planned to arrive early.
02Safety lead time is reviewed every quarter against the supplier's actual delivery performance, and removed once the supplier is on time for six months.
03When the supplier becomes reliable, the safety lead time is removed, reducing average stock by EUR 40,000.