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Here's why: The reorder point triggers when quantities on hand equal usage expected through vendor lead time plus a buffer against uncertainty known as safety stock.
The time value of money never has been so intuitively obvious than in lead times: the lead time to produce, lead time to order, lead time to replenish inventory, lead time to acquire product from foreign providers, lead time of suppliers, lead time for product development and approval, lead time for FDA approval, etc.
O-I North America selects Lead Time Technology to implement the LTT Enterprise(TM) optimization tools suite to enable end to end supply chain process control WILMINGTON, Del.
The lead time until product delivery is also important, as any time not needed for manufacturing or distribution can be used to revisit the sourcing decision to ensure the overall best location is selected.
The lead time for producing a tool including a CAD model varies from tool to tool, but it is often in the order of 10 to 12 weeks.
With standard lead times of only 4-6 weeks for new orders, and plenty of available inventories for short delivery requirements, PKB prides itself on exceeding customer expectations.
June 30 /PRNewswire/ -- Lead Time Technology (LTT), a market leading provider of inventory and business process optimization tools, today announced it has successfully completed its tenth year providing operations process consulting and decision support tools enabling customers to achieve unprecedented supply chain and manufacturing operations performance improvements.
We are able to cast, machine, and subassemble with short lead times--currently producing to release on a three week lead time basis-with total reject of less than 0.