Explain about the term lead time, Business Management

Assignment Help:

Explain about the term Lead Time.

Lead Time:

It is the time which takes the stock to reach through Re-order point to minimum stock level. This may be also described as the time which elapses between the voicing of a requirement for anything and the time taken to satisfy the requirement. When one order is placed today and after 40 days this is fulfilled, in that case 40 days period is the lead time. Therefore, it demonstrates that order must be placed 40 days previous. Lead time finds out the amount of material to be maintained in reserve. When the lead time reduces, the reserve stock also reduces and vice-versa. Hence, the lead time analysis is very essential and the attempt must be made to decrease this period.


Related Discussions:- Explain about the term lead time

Discuss four strategies which can be adopted by businesses, QUESTION 1 ...

QUESTION 1 (a) Businesses are increasingly exposed to scrutiny and criticisms. Discuss four strategies which can be adopted by businesses to respond to these criticisms (b)

What are the main selection criteria for erp software?, Question 1 Warigon...

Question 1 Warigon is a retail company and they want to automate the payment system. Take up that you are the design engineer of that company. What are the aspects that you would

Performance of ernest and young in business, Performance of Ernest & Young...

Performance of Ernest & Young in the Industry Earnest and Young is performing well in the professional service industry, because it mainly use the innovative product concept

Balance sheet, last year''s profit and loss account is which catagory ? ass...

last year''s profit and loss account is which catagory ? asset or liability

Mauritian educational system, QUESTION "Alarmed by reports of declining...

QUESTION "Alarmed by reports of declining achievement test scores, concerned parents looked to technology for solutions, while interested citizens urged school boards to purcha

Communication is vital in management development programmes, QUESTION 1 ...

QUESTION 1 Discuss the differences between monologic communication and dialogic communication. Use a concrete example to illustrate your answer, highlighting the advantages and

Managing diversity - combating challenges, Managing diversity is about more...

Managing diversity is about more than equal employment opportunity and affirmative action (Losyk, 1996). The organisation should create such a working environment as will increase

Corporate design, a) What is corporate design as applied to the graphic de...

a) What is corporate design as applied to the graphic design industry? b) You are a team leader in a graphic design firm and have been attributed a corporate pack design proj

Risk and Return, In a report not to exceed five double-spaced typewritten p...

In a report not to exceed five double-spaced typewritten pages, analyze the results obtained from the three simulations performed, identify the source of the differences, and selec

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd