Explain lead time, Operation Management

Assignment Help:

Explain Lead Time.

Lead Time: Lead Time is the time that takes the stock to reach from Re-order point to minimum stock level. This may be also defined as the time as elapses among the voicing of a requirement for anything and the time taken to satisfy the requirement. If one order is placed today and after 40 days this is fulfilled, then 40 days duration is the lead time.

Therefore it shows that order must be placed 40 days earlier. Lead time finds out the amount of material to be reserved in reserve. As the lead time reduces, the reserve stock also reduces and vice-versa.

Hence, the lead time analysis is very essential and the attempt should be made to reduce this period.


Related Discussions:- Explain lead time

Point rating method, How to write point rating method for assignment

How to write point rating method for assignment

Explain what are four significant pieces of legislation, What are four sign...

What are four significant pieces of legislation that evolved from the civil rights act of 1964

Explain the component of statistical methodology, The component of statisti...

The component of statistical methodology that includes the collection, organization, and summarization of data is called _____. descriptive statistics analytical statistics

Explain what are the coordinates of the central location, A small rural cou...

A small rural county has experienced unprecedented growth over the past 6 years, and as a result, the local school district built the new 500-student North Park Elementary School.

Describe what the advantages of making vs buying, You are the Vice-Presiden...

You are the Vice-President of Manufacturing for a company which manufactures small personal appliances. Your R & D department has designed a revolutionary, new type of electric t

Explain guidelines on discrimination because of religion, Inez Garcia was b...

Inez Garcia was born in Portland, Oregon. Her mother is from Italy and Jewish. Her father is Mexican. Under the Guidelines on Discrimination Because of Religion or National Origin,

Explain annual holding and order costs, Item Cost - $7.00 Order Cost - $283...

Item Cost - $7.00 Order Cost - $283.00 Annual Hold - 32% of item cost Annual Demand - 22,100 Average Demand - 442 per week Standard deviation of weekly demand 20 per week lead time

Explain what are the activities required to produce, What are the outputs o...

What are the outputs of your work unit if you are a manager at a fast-food restaurant? What are the activities required to produce those outputs? What are the inputs?

Explain widget is identical and requires a machining cycle, 3,000 widgets m...

3,000 widgets must be machined on workstation during week. Each widget is identical and requires a machining cycle time (Tc) of 36.5 minutes. All of the machining centres in the sh

Turnaround at the preston plant, what are the most significant events in th...

what are the most significant events in the story of how the plant survived because of the adoption of quality-based principles?

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