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

Research on environmental attitudes, Research on environmental attitudes in...

Research on environmental attitudes in the context of nature-based tourism and ecotourism in particular have emerged as an interesting topic among tourism researchers in recent yea

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

What is the grievances handling, What is the Grievances Handling? Gri...

What is the Grievances Handling? Grievances Handling: Individual workers usually have several complaints called grievances in opposition to the working rules of the busin

Discuss the qualities required by effective business leaders, Question: ...

Question: There is no one specific method of categorizing organization theories. Thus, it is generally accepted that: (a) The Type 1 theorists, also known as the classical s

Describe the product identification and traceability, Problem 1: Explai...

Problem 1: Explain conformance to requirements with respect to purchasing in ISO 9000. List out the steps followed in implementation of an ISO 9000 in compliance to purchasing

Briefly describe the four key drivers of e-commerce, QUESTION 1 (a) How...

QUESTION 1 (a) How is groupware different from other types of software? (b) Illustrate and describe in detail the Computer Supported Cooperative Work (CSCW) matrix QUEST

The common factors that lead to conflict in a team, Question 1: ‘With t...

Question 1: ‘With the growth in team working, organizations are increasingly turning to team role models in the hope of enhancing the effectiveness of their teams. Working in a

BSBFIM501A, Hello, I have an assignment I need to complete in the next 6 we...

Hello, I have an assignment I need to complete in the next 6 weeks and want to know how your service works? It is 1 of 2 modules I require to complete my studies. Can you please a

Production and operations mangement, 5. The average annual investment cost ...

5. The average annual investment cost of a workstation in New Jersey has been calculated to be $100,000. It has been calculated to be $150,000 in Kentucky. The hourly cost at a wor

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