The Order Lead Time or Order Lead Time (OLT) is a characteristic parameter of a logistics network. It is the time that occurs from when an order is placed in the system (Order Entry Date) until the day the customer wants the material on their site (Desired Date). This metric is useful for companies to understand the behavior that their customers have when placing orders in their system, helping them design more profitable models that meet the real needs of their customers.

As part of any industrial process, the OLT metric is influenced by internal and external factors. These factors need to be considered in the analysis for more effective decision making.

The OLT calculation is determined as the difference between the day the client wants the material on site and the day the order was entered into the system. Following this logic, the following formula is obtained:

The Average OLT Based on Volume or Average OLT based on Volume (OLTV) is the sum of the multiplications between the quantity of product delivered and the order waiting time (OLT) divided by the number of orders entered into the system in the period of time that the analysis is carried out in a specific location. In other words:

Obtaining this number allows the company to find the volume-weighted relationship between the amount of material required for each order and the time it took to deliver it. The result obtained from this operation represents the average number of days it takes from when an order is entered into the system and the desired day for its delivery, taking into account the historical data and volumes of each order.

The correct analysis of the waiting time of an order gives a company the power to:.