What does the term "lead time" refer to?

The term "lead time" specifically refers to the duration from when an order is placed until the goods are received. This period encompasses all the steps involved in the procurement process, including order processing, manufacturing (if applicable), and shipping. Understanding lead time is crucial in supply chain management because it helps organizations plan their inventory and manage customer expectations effectively.

In contrast to the correct choice, the other options describe different time periods in a business context but do not define lead time accurately. For instance, receiving payments from customers involves a different aspect of the financial cycle, while delivery time to end consumers focuses on the final stage of distribution. Production time is concerned with the manufacturing process itself, which may or may not overlap with lead time depending on factors such as availability of materials or production capacity. Thus, the correct option captures the essence of lead time in relation to the procurement process.