Supply Chain & Procurement worked example

Lead Time Variability with fastest observed lead time of 13 days: a worked example

Push fastest observed lead time up to 13 days and the picture changes. This example computes every intermediate figure at that operating point. Use it to size lead-time safety stock and supplier risk in Supply Chain & Procurement.

The inputs for this scenario

  • Fastest observed lead time: 13 days (raised for this scenario; the documented default is 5)
  • Slowest observed lead time: 9 days (unchanged)
  • Average lead time: 7 days (unchanged)

Working through the calculation

  • Applying the documented formula (Lead-time variability = (maximum − minimum) lead time ÷ average lead time × 100) to the inputs above produces each figure below.
  • At this operating point the engine returns 0 % for lead-time variability, the number this scenario is built around.
  • At this operating point the engine returns 0 value for spread.
  • At this operating point the engine returns 13 value for minimum.
  • At this operating point the engine returns 9 value for maximum.

How this compares with the baseline

  • Against the tool's baseline example, where fastest observed lead time sits at 5 days and the headline result is 57.14 %, this scenario comes in 100% below the baseline at 0 %.
  • It computes the range between maximum and minimum lead time divided by the average, as a percentage that quantifies delivery inconsistency. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Lead-time variability: 0 % (headline result)
  • Spread: 0 value
  • Minimum: 13 value
  • Maximum: 9 value

Run it with your numbers

  • Every input above is editable in the live Lead Time Variability calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.