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This is the time gap between placement of an order and the time of actual supply. The determination of lead time is a complicated matter.
It is of core significance in determining the stock level.
Lead time + servicing Time + Delivery Time + Receiving Time.
The minimum maximum and average lead times differ from unit to unit and time to time. It is a procurement cycle.
Cycle inventories are held for the reason that purchases are usually made in lots rather than the exact amount which may be needed at a point of time. Of course if all p
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