Order Lead Time Influencing Factors in the Semiconductor Supply Chain

Determining and communicating reliable order lead time information is vital to retain customers and increase supply chain resilience, especially in complex settings such as the semiconductor supply chain. To overcome shortcomings of recent research on order lead time and its influencing factors, we collect order data from a global semiconductor manufacturer that captures both make-to-plan and make-to-order information within the internal supply chain. Our contribution is twofold. First, our results support an accurate prediction of the confirmed order lead time and thus its reliable communication to customers. We develop three linear regression models: one general, one conventional, and one model for particular situations where standard delivery times are hard to determine. Second, we develop three specific managerial implications by analyzing influencing factors that highly correlate with the confirmed order lead time and capture information on the customer request, order fulfillment details, and product specifics.