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

How can a retail bank deal with liquidity risk, QUESTION 1 Discuss the ...

QUESTION 1 Discuss the main components and functions of the financial system making reference to Rodrigues Island. Suggest measures which could be implemented to develop the fi

BUSINESS PLAN, L NEEP HELP TO DETERMINE THE PRICE OF CONCIERGE SERVICE TO T...

L NEEP HELP TO DETERMINE THE PRICE OF CONCIERGE SERVICE TO THE SENIORS AND NURSING MOTHERS

Describe four types of transaction cost, Many organisations are making deci...

Many organisations are making decisions to outsource some of their activities. Though, when considering the option to outsource, organisations have to consider the transaction cost

Explain the steps involved in vogel approximation method, Q1. a. Explain th...

Q1. a. Explain the steps involved in Vogel's approximation method (VAM) of solving Transportation Problem. b. Solve the following transportation problem using Vogel's approximat

"Medical Group Practices and Public Health", 1. Imagine a life threatening ...

1. Imagine a life threatening event or a natural disaster in your community such as a severe weather event, terrorist attack, or other type of public health emergency. Propose an o

Employee or customer safety, Employee or Customer Safety: Worn out equipme...

Employee or Customer Safety: Worn out equipment is likely to fail at any moment and these failures can cause injuries to the workers working on those equipments. Products such

How is pricing affected in marketing management, How is pricing affected in...

How is pricing affected in marketing management? Pricing: The price of the products is implies whereby manufacturers acquire a fair return for their labour and replace/ra

A retail co. plans to work on a margin of 54% of ret, Ask question #A retai...

Ask question #A retail co. plans to work on a margin of 54% of retail price & to incur other Variable Cost of 4%. If is expected fixed cost of Br. 40,000. i. Find the equation rel

Corporate political activity, Corporate political activity is normally unde...

Corporate political activity is normally undertaken in order to   Secure policy preferences.

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