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Glossary

Buying & open-to-buy

What is lead time?

The time from placing an order to receiving the stock.

Why it matters: Longer and less reliable lead times force more safety stock and earlier commitments.

Related terms

safety stock

The buffer held to cover the gap between forecast and actual demand, and variability in supply.

MOQ (minimum order quantity)

The smallest quantity a supplier will produce or ship.

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