What is the term for the number of purchase units used from when an order is placed to when it is received?

The term for the number of purchase units used from when an order is placed to when it is received is known as "lead-time quantity." This concept is important in inventory management and purchasing because it helps housekeeping and other departments to understand how much product will be consumed during the time it takes for new stock to be delivered.

Lead-time quantity is critical for maintaining optimal inventory levels; it ensures that you have enough supplies on hand to meet operational demands while waiting for new orders to arrive. By accurately determining lead-time quantity, managers can make informed decisions about when to reorder supplies and how much to order, ultimately helping to prevent stockouts or overstock situations.

The other options refer to different aspects of inventory management and supply chain processes. Stock turnover relates to how quickly inventory is sold and replaced over a period. Order frequency refers to how often orders are placed, and supply chain duration generally describes the overall time a product takes to move from suppliers to end-users, which encompasses much more than just the lead-time quantity. Understanding these terms is vital for effective management, but lead-time quantity specifically addresses consumption during the replenishment interval.