Chapter 1 · Topic 8
BOD: Transport lead time
- Time from departure at origin to arrival at destination
- Drives shipment release dates — when o9 must trigger a transfer order
- Expressed in days or hours depending on the distribution network
- Longer transit times increase in-transit (pipeline) inventory
- Varies by transport mode — air is faster, sea and road are slower
Transport Lead Time is the time an item spends in transit on a distribution lane — from the moment it departs the origin node to the moment it arrives at the destination node. The planning engine uses transit time to offset shipment release dates: if a DC needs stock on day 10 and transit takes 3 days, the shipment must leave the warehouse on day 7. Accurate transit times prevent phantom supply — situations where the plan assumes goods are available before they actually arrive.