Business Terms Dictionary

Lead Time Adjustment Factor

The Lead Time Adjustment Factor is a multiplicative factor applied to a part’s lead time to account for planned or expected disruptions. It can be applied to an individual item or a group of items affected by the same lead time change. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


This factor is used to temporarily adjust lead times without permanently altering master data. It is especially useful in scenarios where external factors, such as transportation disruptions or supplier delays, temporarily extend the usual lead time. By applying this factor, planners can maintain accurate replenishment timing without manually updating lead time records.


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With ForgeFlow Cloud ERP, the Lead Time Adjustment Factor helps DDMRP planners proactively manage temporary disruptions. Instead of manually modifying lead times for each item, you can apply a single factor to affected products, ensuring replenishment signals remain accurate and aligned with real-world supply conditions.
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