Business Terms Dictionary

Lead-Time-Managed (LTM) Part

A Lead-Time-Managed (LTM) Part is a critical, non-stocked component that requires special monitoring throughout its execution horizon. These parts usually have long lead times but insufficient demand volume to justify keeping them in stock. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


LTM parts are carefully tracked to prevent supply disruptions. A portion of their lead time (typically 33%) is monitored using a three-zoned alert system (green, yellow, red) to warn planners of potential delays and allow proactive management.


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With ForgeFlow Cloud ERP, LTM parts are seamlessly integrated into DDMRP planning, ensuring that long-lead-time components receive focused attention. The system’s real-time monitoring and alert zones help prevent critical delays, keeping production and operations running smoothly.
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