What does 'lead time' refer to in the context of supply chains?

'Lead time' in the context of supply chains is specifically defined as the duration from when a customer places an order until they receive the ordered product. This encompasses all the stages involved, including processing the order, manufacturing or sourcing the product, and shipping it to the customer. Understanding lead time is critical for managing customer expectations, inventory levels, and overall supply chain efficiency.

While the other choices touch on related concepts, they do not accurately capture the essence of lead time. Product development time pertains to the initial creation of a product, which is distinct from the timeline associated with fulfilling customer orders. The time taken for customer feedback refers to the response period after a product has been delivered, rather than the order fulfillment process. Lastly, the timeframe for shipping products domestically only considers a portion of the overall lead time and neglects other essential activities that occur before shipping.