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

New product development process, "It's a cross functional business process ...

"It's a cross functional business process designed to optimize development activities and customizes to fit business needs. It captures and shares what has worked well in the past

Implementation of a formalised structure for an ems, The case study which f...

The case study which follows is based on an Environmental Management System (EMS). Read it carefully and then answer the short structured questions that follow: Vondax Manufactu

Behaviour, Question: 1 What is meant by the core competency and synergy ...

Question: 1 What is meant by the core competency and synergy components of strategy? Give examples. Perform a SWOT analysis for the university campus you attend. Do you think yo

Distinguish between oracy and literacy, QUESTION 1 In deciding on means...

QUESTION 1 In deciding on means of communication, there are several factors to be considered. What are they and how important and determinant are they in producing the expected

Business in post american world, do you believe that adaptive unconscious c...

do you believe that adaptive unconscious creates false memories?

Describe the formal communication networks, Question 1: a) Briefly desc...

Question 1: a) Briefly describe the formal communication networks in an organisation. b) What are the functions of the informal flow of information in an organisation? Q

Leadership and organization, contrast the advantages and disadvantages on j...

contrast the advantages and disadvantages on just-in-learning

Implications of risks in conducting international trade, Question 1: (a...

Question 1: (a) Discuss the importance and implications of "Risks" in conducting International Trade. (b) What are 2 of the most prominent organisations involved in world tr

Business and cultural environments, a) Illustrate that a range of methods a...

a) Illustrate that a range of methods and techniques have been applied in demonstration of Way the market forces shape organisational forces        b) Judge how the business and c

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