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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.
Exponential smoothing adds a percentage (called) of last period's forecast to estimate next period's demand
A stock out occurs when supply exceeds demand during the lead time
product layout
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In a single period model if shortage cost is four times excess cost then the optimum service level is what percent?
Why are organizations changing from batch (large) shipments to just-in-time (JIT) shipments?
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