ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the amount of storage space
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the time taken for the supplier to deliver
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the cost of holding stocks
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the buffer stock level required
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Detailed explanation-1: -In manufacturing, lead time often represents the time it takes to create a product and deliver it to a consumer. Lead time is calculated by adding any combination of the number of days to procure materials, manufacture goods, and deliver finished products.
Detailed explanation-2: -Lead Time vs. Cycle time is the time it takes from the start to the end of an internal process, while lead time is the duration it takes from the start to the end to fulfill a customer’s request, which may be an inquiry or delivery of a product.
Detailed explanation-3: -In supply chain management, lead time exclusively refers to the time it takes for a supplier company to have goods ready for delivery. For example, an apparel company may have a 7-day lead time for custom t-shirts. Typically, this measurement does not include shipping time.