Business Terms Dictionary

Customer Tolerance Time

The maximum time a customer is willing to wait for the delivery of a product or service before seeking alternatives. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


Customer Tolerance Time (CTT) is a key factor in supply chain and production planning, influencing inventory strategies, lead time management, and service levels. When CTT is shorter than production or supply lead time, strategic buffers (stock, capacity, or time) are needed to ensure on-time delivery.


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Long lead times can drive customers away. ForgeFlow Cloud ERP helps businesses align supply strategies with Customer Tolerance Time by strategically placing buffers at decoupling points. This ensures that high-demand products are available when needed, improving service levels, reducing lost sales, and enhancing customer satisfaction.
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