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

Disadvantage of the corporate form of business organization, The organizati...

The organization that administers the certification programs for Certified Hotel Account Executives and Certified Hotel Technology Professionals is: Answer

What is a digital certificate, QUESTION At the heart of Public Key Infr...

QUESTION At the heart of Public Key Infrastructure (PKI) is encryption. Encryption is the process of scrambling data in such a way that it is difficult, expensive, or time cons

Behavior modelling, Behavior modelling: 1. Jack Santoni works on the f...

Behavior modelling: 1. Jack Santoni works on the field production crew at Gusher Drilling Company. When he joined the company five years ago, the supervisor who hired him said

E-marketing, Electronic marketing (E-marketing) can be viewed as a new mode...

Electronic marketing (E-marketing) can be viewed as a new modern business practice associated with buying and selling goods, services, information and ideas via the Internet and ot

Factors - decision on proposed strategy change, Factors to Consider Before ...

Factors to Consider Before Taking a Decision on the Proposed Strategy Change Although most of the striking and important questions have been considered or highlighted which

Minimum cost, Sid and Nancy both need to buy pens for school. The bookstor...

Sid and Nancy both need to buy pens for school. The bookstore has only two types of pens: Basic blue pens (B), which cost $.60 each. Long-lasting green pens (G), which have

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

Define stage for their six sigma initiative, North Shore University hospita...

North Shore University hospital in Manhasset NY is part of the North Shore Long Island Jewish health system. The third largest non-sectarian health system in the US. The management

Towards effectiveness and efficiency in an organization, QUESTION Meeti...

QUESTION Meetings and committees have unfortunately acquired notoriety, being widely regarded as ineffective and wasteful of precious time (i) Give your views on the above

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