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Lead time demand

Lead-time demand is expected consumption between placing a replenishment order and having that supply available. Its result is a quantity of items, not a number of days.[1]

Under constant demand, multiply expected units per day by lead time in days. Align the time units and keep uncertainty buffers separate. Around a seasonal peak, a day-by-day forecast may be preferable to a historical average.

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Sources

  1. Design details - Handling reordering policies - Business Central | Microsoft Learn

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