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Lead Time Management

Lead Time Management

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Published by Simranjeet Singh
Lead Time Management
Lead Time Management

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Published by: Simranjeet Singh on Oct 09, 2009
Copyright:Attribution Non-commercial

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05/12/2011

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Lead Time Management
“The Goal of every Commodity managershould be to have Zero Liability,maximum flexibility and lowest possiblecost”
Former VP IBM ,Gateway
 
 
 Importance of Time
Time is money.Specially in Logistics management.Cost directly proportional to goods in the pipeline.Long lead time leads to Slow Responsiveness.Thus High Cost and Slow Response.
Example:
In 1994, Compack Computers lost between 500m$ to1bn$ in sales due out of stock laptops and computers.
 
 
 Definition:
Point Of View
 –
Customer.
Time Elapsed from Order to Delivery”
 –
Supplier.
“ Time it takes an order to get converted intocash”.
.

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