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

Explaining clearly the dominant strategies, QUESTION 1 The manager of M...

QUESTION 1 The manager of MTML is considering the possibility of entering the Mauritian Telecommunication Market, where there is only one firm operating, namely Mauritius Telec

Organisational planning tool, Organisational Planning tool a) Opportuni...

Organisational Planning tool a) Opportunity cost refers cost calculated in terms of the next best alternative choice that is predetermined when a decision is made. In this case

Describe advantages and disadvantages of holding inventory, Describe advant...

Describe advantages and disadvantages of holding inventory You are the Logistics Manager for a Spanish retailer of sports clothing and equipment (shirts, shorts, swimwear, train

Basic parts of an effective presentation, Question 1: "Planning, organi...

Question 1: "Planning, organising and controlling are the key functions of management." Discuss Question 2: Analyse the variety of skills that managers must display to

Stages of purchasing, describe stages of purchasing according to van weele ...

describe stages of purchasing according to van weele 2010 ,reck 1988

What is role of bpel? , BPEL is a language for relatively easy description ...

BPEL is a language for relatively easy description of how web services are composed into business processes. BPEL is the first of its kind. BPEL ? Permits abstract and execut

Pharmaceutical services industry, Paisano Pharmacies, a fictitious business...

Paisano Pharmacies, a fictitious business in the pharmaceutical services industry, is owned by VictorPaisano. Currently, Paisano has two pharmacieslocated in Killeen and Temple, Te

Difference between personal and business letters, Problem 1 Explain the...

Problem 1 Explain the importance of Business Letters. Differentiate between Personal and Business Letters. Importance of Business Letters Difference between Personal and

International business strategy, Evaluate The Case Made In The Article For ...

Evaluate The Case Made In The Article For The Third Leg In The Strategy Tripod With Particular Reference To The Effectiveness Of The Four Cases Offered In Supporting The Central Ar

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