Business Terms Dictionary

Cumulative Lead Time

The total time required to manufacture or procure a finished product from scratch, considering the longest path of dependent lead times. © Copyright 2025 Demand Driven Institute. Used with permission.

What does it include?


Cumulative Lead Time includes the sum of procurement, manufacturing, assembly, and shipping lead times for all necessary components and subassemblies.


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In DDMRP, understanding Cumulative Lead Time is key to properly sizing buffers and ensuring timely replenishment. Long or unpredictable Cumulative Lead Times can cause stock shortages and production delays. With ForgeFlow Cloud ERP, you can accurately track and manage these lead times across all supply chain stages, ensuring better buffer sizing and demand-driven replenishment.
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