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Explain the specification of lead time.
Lead Time has:
(i) Time to place the order and to process the enquiries.
(ii) Time to send the order to the supplier.
(iii) Time for the supplier to complete the order.
(iv) Transportation time to reach the purchaser.
Lead time is to be occupied into consideration for setting the minimum, maximum and the order quantities for all time.
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Q. 4. A two year sales history by quarter for a seasonal product is given below. Sales Quarter First Year Second Year 1 30 42 2 48 58 3 60 74 4 35 44 a) Using
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