GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buyer lead-time time & price increases
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Production time & demand changes
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Employee motivation & supplier lead-in time
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Supplier lead-time time & price changes
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Detailed explanation-1: -Lead time comprises six components: Preprocessing Time, Processing Time, Waiting Time, Storage Time, Transportation Time, and Inspection Time.
Detailed explanation-2: -The length of time between the issuance of a forecast and the occurrence of the phenomena that were predicted. Copyright 2022 American Meteorological Society (AMS).
Detailed explanation-3: -Lead Time is an important factor in any demand-driven forecasting or retail replenishment system. It drives your order points and helps you place orders at just the right time. If your lead time is inaccurate you will quickly find yourself overstocked or understocked.
Detailed explanation-4: -As part of the inventory replenishment process, you must estimate the inventory lead time (the time that it takes from when you place a PO to the time that your receive it and put it in a bin ready for sale). The lead times impact your order timing as well as the quantity which you order.