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

Management function, Discoss the skills required by the management at diffe...

Discoss the skills required by the management at different levels of the hierachy

Send the mail to all the staffs, QUESTION Nathan is the floor Manager a...

QUESTION Nathan is the floor Manager at Bell Enterprise. Lately he has been concerned with staffs not respecting the lunch hours. He has warned them but with no avail. He then

EU, Provide a historical perspective of the EU by discussing how it started...

Provide a historical perspective of the EU by discussing how it started and where it is today. In addition, research the Christian Democratic Union (CDU) which is a Christian-based

Effective performance appraisal system, Problem 1: (a) What are the fe...

Problem 1: (a) What are the features of an effective performance appraisal system? (b) Discuss the advantages and disadvantages of performance appraisal systems? Proble

The best ways to motivate employees in an organization, QUESTION Motiva...

QUESTION Motivated people are those who have made a conscious decision to devote considerable effort to achieving something that they value. What they value will differ greatly

Different components of the external business environment, Problem: Glo...

Problem: Globalisation and trade liberalization are having a lot of impact on the way businesses are being managed today. The business environment has become very dynamic. In s

Why is the wbs important for the planning stage, QUESTION (1) The proje...

QUESTION (1) The project lifecycle refers to a logical sequence of activities to accomplish the project's goals and objectives. Elaborate on these basic phases using and exampl

The Norton Case Study, Read the following case study: The Norton Company Ve...

Read the following case study: The Norton Company Versus 3M 2.Use examples from your readings, and when possible, current events, and personal experience to support your answers t

Employee or customer safety, Employee or Customer Safety: Worn out equipme...

Employee or Customer Safety: Worn out equipment is likely to fail at any moment and these failures can cause injuries to the workers working on those equipments. Products such

Describe ebay activities, Question: A firm's connected activities are d...

Question: A firm's connected activities are defined as those activities that the firm must perform in order to deliver its customer value. A firm's strategy is said to be sound

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