ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The total time it takes from placing an order until it is received is known as:
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stockout
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lead time
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turnover rate
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inventory shrinkage
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Explanation:
Detailed explanation-1: -The term purchase order lead time (POLT) refers to the number of days it takes between the time that a company orders production inputs and the time those items arrive at the manufacturing plant. Put simply, a purchase order lead time is the estimated time it takes to receive an order after it is placed.
Detailed explanation-2: -Lead time consists of: Preprocessing Lead Time (also known as “planning time” or “paperwork"): the time required to release a purchase order (if you buy an item) or create a job (if you manufacture an item), from the time you learn of the requirement.
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