What does the term “lead time” refer to in logistics?

The term "lead time" in logistics refers to the total time from order placement to delivery. This concept encompasses various stages in the supply chain process, including order processing, production time (if applicable), packaging, shipping, and final delivery to the customer or designated location. Understanding lead time is crucial for both supply chain management and customer satisfaction, as shorter lead times often lead to improved service levels and competitiveness in the market.

A more granular view of lead time illustrates that it is not just about how long it takes to package and ship goods or how long customs clearance takes; it's the entire process from the moment an order is initiated until it is fulfilled and in the hands of the customer. Thus, option B captures the holistic nature of lead time, reflecting the various steps involved in fulfilling a customer order in logistics.