How is the lead time determined, Business Management

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How is the lead time determined?

Lead Time comprises:

a. Time to procedure the enquiries and to put the order

b. Time to deliver the command to the supplier

c. Time for the supplier to complete the order and,

d. Transportation time to attain the purchaser and many more.

Lead time is to be considered for setting the minimum, maximum and the order quantities for all time.

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