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

Staff training and production of documentation, QUESTION 1 (a) Rational...

QUESTION 1 (a) Rationalising procedures and redesigning business processes are limited to specific parts of a business. New information systems can ultimately affect the design

Determining economic order size, Economic order size is that size of the...

Economic order size is that size of the order which gives maximum economy in purchasing any item of material. The other terms used for economic order size are economic

Business plan and ratio analysis, MK Robe-Stones (MK-R-S) is a large manufa...

MK Robe-Stones (MK-R-S) is a large manufacturing firm which was set up as a Limited company 6 years ago, in 2009, by a family organisation. The firm was originally started as a bus

objectives of materials handling, Objectives of Materials Handling 1. ...

Objectives of Materials Handling 1. Reduction in Wastage of Machine  time: Proper material handling  system would  ensure  regular  supply  and distribution  of raw  material

What are the steps in developing a product, What are the steps in developin...

What are the steps in developing a product? The various steps included within developing a product are as follows: 1. Acquire New Ideas through initiating, adaptation, throu

PPD, Identify development opportunities to meet current and future defined ...

Identify development opportunities to meet current and future defined needs

Phases of business process reengineering, According to perter F. Drucker R...

According to perter F. Drucker Reengineering is new and it has to be done. The tasks experts agree upon to successfully perform BPR can be grouped into seven steps or p

Consumer behaviour when making a purchase, Describe briefly the main stages...

Describe briefly the main stages included in the (rational) process of consumer behaviour when making a purchase.   Problem/Need recognition The purchasing process is a pro

Organizational management, 1. Explain how recent changes have made the worl...

1. Explain how recent changes have made the world global marketplace different than in the past. 2. What role does faith play in the global marketplace?

Illustrate the major and minor managerial decisions, Illustrate the major a...

Illustrate the major and minor managerial decisions? Major and Minor Decisions: Decision regarding financial outlay can be minor or major. A decision associated to the pu

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