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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.
Refer to the results from the SimQuick simulation model below to answer the following 5 multiple-choice questions. You will see that the results are similar to the two-teller, bank
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