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

Business Math, Calculate the cash discount and the net amount due for the f...

Calculate the cash discount and the net amount due for the following transaction. Amount of Invoice Terms of Sale Cash Discount Net Amount Due $12,660.00 2/10, n/45

Line and staff conflict, what are the dynamics and consequences of line and...

what are the dynamics and consequences of line and staff conflict

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

The process of all the conciliatory bodies, Question 1: Analyse the cir...

Question 1: Analyse the circumstances under which an employer would be justified in terminating his worker's contract of employment under the Employment Rights Act. Questio

Manage recruitment, Task one : questions 3.3 until 3.10 Task two : questio...

Task one : questions 3.3 until 3.10 Task two : questions 3.A until 3.B questions 4 Task three : questions 3.1 until 3.3

Problem based on decision trees allow, Decision trees permits: The ...

Decision trees permits: The user to gain a wide idea of possible outcomes of the project/decision, i.e. in this case the selection of two locations Easier understandin

The relevance and importance of planning in management, QUESTION 1 (a)...

QUESTION 1 (a) Explain the relevance and importance of planning in management (b) Identify the steps involved in problem solving and decision-making QUESTION 2 Is m

Discuss the four criteria of the evaluation framework, QUESTION 1 ‘‘It ...

QUESTION 1 ‘‘It was argued that the World Trade Organisation (WTO) and GATT Uruguay Round Agreements have functioned principally to pry open markets for the benefit of transnat

Evaluate the companys approach to innovation management, Select a company o...

Select a company of your choice. You are to analyse, evaluate and critique the company's approach to Innovation Management. Identify who the key player/s is/are? Comment on the ty

Types of leadership styles, Types of leadership styles: Dissimilar kin...

Types of leadership styles: Dissimilar kinds of leadership styles occur in my work settings. Advantages and disadvantages occur in every leadership style. The background and a

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