Logistics & Supply Chain
Basic

Order Cycle Time

Elapsed time from a customer placing an order to receiving it.

Formula

OCT=tdelivered−torderedOCT = t_{delivered} - t_{ordered}

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Variables

OCTOrder cycle time
t_{delivered}Delivery time
t_{ordered}Order time

Example

Ordered Mon, delivered Thu: OCT = 3 days

Did You Know?

Shorter order cycle times are the whole promise behind next-day e-commerce delivery.

logisticscycle timeservice

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Order size that minimises the combined cost of ordering and holding stock.

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Stock level that triggers a new order, covering demand during the lead time.

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How many times inventory is sold and replaced in a period.

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