Determining when to reorder involves two factors: rate of use and lead time.Which of the following statements defines lead time?
A)Length of time it takes to produce the item ordered
B)How much of the product is used in a specified period
C)Amount of time required for supplies to arrive at the office once the order has been placed
D)Amount of time added to the expected delivery date,so the office does not run out of supplies

Question

Quizplus · Accepted Answer

Lead time refers to the amount of time required for supplies to arrive at the office once the order has been placed. This is an important factor to consider when reordering to ensure that the office does not run out of supplies.

Determining When to Reorder Involves Two Factors: Rate of Use