COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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time between placing an order and its delivery
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time between receiving a customer order and producing the products
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time between receiving a customer order and delivering the items
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time required to correct errors in the defective products
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Detailed explanation-1: -The purchase order lead time is how long it takes for an order to be fulfilled-from the time the order is placed until the estimated date of receipt. So if a company places an order for supplies on May 1 and it’s expected to be delivered on May 10, the POLT for the supplies is nine days.
Detailed explanation-2: -Explanation: Lead Time: The time gap between the placing of an order and its actual arrival in the inventory is known as lead time.
Detailed explanation-3: -What is the Difference Between Lead and Delivery Time? While lead time pertains to the overall duration or interval of processing the order until the customer receives it, delivery time is the time it takes for the product or service to be transported to the customer.