Business
Lead Time Demand Calculator
Calculate how much stock will sell while waiting for a new order to arrive.
The result is the number of units you are expected to sell while waiting for a new order to arrive, so it shows how much stock you need to cover that waiting period.
Formula
Lead time demand = average daily usage multiplied by lead time in days.
How it works
Multiply daily sales by the days between ordering and delivery. That is the stock you expect to sell while the order is on its way, and it is the core part of deciding when to reorder.
Worked example
For example, 20 units per day over a lead time of 7 days give a lead time demand of 20 × 7 = 140 units.
FAQs
How is this different from reorder point?
Lead time demand is expected sales during delivery wait only. Reorder point adds safety stock on top of it.
What if daily sales vary?
Use a realistic average. For volatile products, add safety stock separately rather than inflating the average.
Should weekends count?
Use calendar days if sales and deliveries follow calendar days, or selling days if the shop closes on some days, and stay consistent.
Estimates only, not financial advice. Check your figures before making a business decision.
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