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

ERP, Distinguish between business function and business process

Distinguish between business function and business process

Solar and wind energy business plan, Solar and Wind Energy for India and Pa...

Solar and Wind Energy for India and Pakistan - Case study and business plan I want a case study and full business plan about installing solar power systems and wind energy for

Advantages of entrepreneurship development , Advantages of Entrepreneurship...

Advantages of Entrepreneurship Development You will be your own boss and the boss of other people and make the decisions that are crucial to the business' success or failu

Material management, what are the functions of material managemnet

what are the functions of material managemnet

Implement a business process re-engineering strategy, Consider you are a co...

Consider you are a consultant from the company Engineering Experts. One of your clients has contacted you to re-engineer the core process of his company. Explain how you will imple

Global trading, how would you incorporate political risk into the capital b...

how would you incorporate political risk into the capital budgeting process of foreign investments specifically in the philippines

Describe breaking cost business barriers, Q. Describe Breaking Cost Busines...

Q. Describe Breaking Cost Business Barriers? IT is as well helpful for a business to gain strategic reductions in operations costs. Using Intranets as well as other telecommuni

Illustration based on business opening hours, Business opening hours a...

Business opening hours a) Opportunity cost refers to the cost of the next best alternative that is foregone in a decision. In this case, it refers to the loss income by not op

Importance of control for managers to achieve the objectives, QUESTION 1 ...

QUESTION 1 XYZ Ltd is a company that likes to encourage its employees through internal promotion. Consequently, many technical workers were promoted as first line managers in t

What is meant by the term hawthorne effect, Question : (i) Analyse ...

Question : (i) Analyse Ray Carr's working life in relation to Mallow's hierarchy of needs. (ii) (a) What organisational structure might have been set up to improve the

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