1. Inventory Management
  2. Supplier Performance

Supplier Lead Time Variability

Time

Indicates the variation in lead time for orders from a particular supplier. High variability can make inventory planning challenging and may necessitate higher safety stock levels.

Formula

Standard Deviation of Supplier Lead Times

Example

If the lead times over the past month were 5, 6, 7, 5, and 8 days, the standard deviation might be 1.2 days, indicating variability.