Lead Time Cost Calculator
LTC v1.0
5
0
5
10
20
40
60
100
1
50
100
250
500
1000
$0.50
$0.01
$0.50
$1
$2
$3.50
$5
$10.00
$0.50
$10
$25
$50
$75
$100
95%
50%
60%
75%
85%
95%
99%
Lead Time Cost
$250.00
Safety Stock
28 units
Service Level
95.0%
📊
Lead Time Analysis
$0
$100
$250
$500
$750
$1000
Holding Cost:
$150.00
Stockout Cost:
$100.00
Lead Time Demand
500 units
Holding Cost
$150.00
Stockout Cost
$100.00
Total Cost
$250.00
📋
Lead Time Benchmarks
Lead Time
Impact
Risk
< 1 day
Low
Minimal
1-5 days
Moderate
Low
5-15 days
High
Medium
15+ days
Very High
High
📐
Formula
Lead Time Demand = Lead Time × Daily Demand
Units demanded during lead time
Holding Cost = Lead Time Demand × Holding Cost per Unit
Stockout Cost = (1 - Service Level) × Demand × Stockout Cost
Longer lead times increase holding and stockout costs
📋
Lead Time Guide
- 1 Enter lead time in days
- 2 Set daily demand and holding cost
- 3 Add stockout cost per unit
- 4 Calculate total lead time cost