Inventory · Odoo glossary

Lead Times

Learn what lead times measure, how Odoo uses purchasing, production and delivery durations, and why scheduling buffers differ from actual processing time.

Definition

In general ERP practice

Lead time is the elapsed time between a defined starting event and a defined completion event. In supply chains, this may mean the time from placing a supplier order to receiving goods, or from starting production to completing a finished item.

A lead time is meaningful only when its boundaries are clear. Supplier transit, internal preparation, production and customer delivery are different intervals; using one number for all of them can distort planning.

In Odoo

Odoo uses several lead-time settings to coordinate receipts, manufacturing and deliveries. Vendor lead time relates purchase confirmation to receipt. Manufacturing lead time estimates production duration, while customer lead time supports the planned shipment date.

Additional preparation time and security buffers influence scheduling. Odoo’s documentation describes working backwards from delivery needs to plan replenishment. These configured durations are planning inputs; they should not be confused with measurements of every order’s actual elapsed time.

Identify the interval

  1. Supplier lead time

    From purchase confirmation to expected receipt.

  2. Production lead time

    The expected duration required to complete manufacturing.

  3. Planning buffer

    Additional allowance used when scheduling for possible delays.

Illustrative planning question

If a component normally takes ten days to arrive, ordering it two days before assembly is unlikely to support the planned start. The next step is to consider existing stock, incoming supply and the actual production sequence rather than assuming every duration can be added into one universal formula.

Official Odoo documentation

The Odoo-specific explanation above is based on the documentation for Odoo 19. Features and workflows can differ in other versions.