Lead time

Lead time is the amount of time it takes from when you place an order with a supplier until the new stock arrives and becomes available to sell. In forecasting, lead time helps Stockie know when you’ll run low and how much demand will happen before stock replenishment arrives.

How lead time works

• It’s measured in days.
• Stockie uses lead time to calculate lead time demand — how much stock you’re expected to sell during that period.
• Longer lead times mean you need to reorder earlier or hold more stock.

Why lead time is important

• Ensures Stockie doesn’t trigger reorder alerts too late.
• Increases accuracy of safety stock and reorder point calculations.
• Reflects real supply chain delays in your forecasting.

Example

If your supplier typically takes 10 days to deliver and you sell 5 units/day, you’d expect to sell ~50 units before the next order arrives — this expectation is lead time demand. Stockie factors this into reorder recommendations.