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

How is the span of control affected in the organisation, How is the span of...

How is the span of control affected in the organisation? Span of control: Span of control implies the number subordinates which report to an executive or the number of su

Just-in-time inventory control system, Plants : Numbers changes occur about...

Plants : Numbers changes occur about the plant which include plant layout multi function workers, demand pull production kanbans self inspection MRP ( material requirements pla

PRODUCT, WHAT ARE THE FOUR STAGE IN PRODUCT LIFECYCLE

WHAT ARE THE FOUR STAGE IN PRODUCT LIFECYCLE

Define the wordings of b. higgins about economic development, Define the wo...

Define the wordings of B. Higgins about Economic Development. According to the wordings of B. Higgins, about the economic Development as, "Entrepreneurship is meant the action

Applying Psychology at work, You are a middle manager for a company and are...

You are a middle manager for a company and are planning a training session for your supervisors on effective versus ineffective leadership. You know from past training sessions tha

What volume of sales will be essential to cover, What volume of sales will ...

What volume of sales will be essential to cover? The reasonable return of capital utilised to cover the volume of sales as: - Ordinary and preference dividends, and - Res

Business plan, starting up a maintances business plan

starting up a maintances business plan

Technology used for communication, Question 1 Since 2000, Tizil Company...

Question 1 Since 2000, Tizil Company Ltd manufactures Teddy bears which it exports to European countries. It has several factories located in Mauritius and in Rodrigues. With

Monthly maintenance programme, Daily maintenance for every facility is n...

Daily maintenance for every facility is not advisable as it would be quite expensive and time consuming. Hence according to the requirements and importance of the machi

What are the important provisions for employee health, What are the importa...

What are the important provisions for employee health? Important provisions of Factory Act, 1948 about health: The given are the significant provisions for employee

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