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

Industrial and commercial bank of china (icbc), Industrial and Commercial B...

Industrial and Commercial Bank of China (ICBC) a) An Initial Public Offering (IPO) happens when a publicly-listed company floats its shares on a stock exchange for the awfully

Organizations can make the planning process more effective, QUESTION Th...

QUESTION The financial crisis in America reminded business organizations about the difficulty to plan in a very dynamic business environment. Many organizations were unprepared

Reducing balance method and straight line method, Satine Enterprise Ltd. ...

Satine Enterprise Ltd. a) Reducing balance method: Year Depreciation Net Book Value 0 0 $25,000

Strengths and weaknesses of the existing system, The system analyst must un...

The system analyst must understand the existing problems and strengths and weaknesses of the existing system. Other activities comprise identifying the overall implications and ben

Explain how conflict occurs at different levels of company, Question 1: ...

Question 1: (a) "Conflict in organizations can be both functional and dysfunctional." Critically discuss the statement illustrating your answer with examples. (b) Explain h

Benefits of holding inventories, There are three main purposes or motive...

There are three main purposes or motives of holing inventories: a. The transaction Motive : Which facilitates continuous production and timely execution of sales orders

Emerging issues, 5000 words current emerging issue in australia

5000 words current emerging issue in australia

Implement performance management system in organization, Question 1: (a...

Question 1: (a) Describe the process through which you would proceed to implement a Performance Management System in your organization. (b) What are the main problems that y

Models of human resource management, breifly describe the following models ...

breifly describe the following models of human resource management; 1the guest model of hrm 2the michigan matching model of hrm 2the harvard model of hrm 3the john storey model of

What are the benefits and challenges of enterprise system, Question: (a...

Question: (a) List powerful worldwide changes that have altered the business environment and brought about the deployment of Information Systems in organisations. (b) What m

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