Quality has little effect on the lead time taken by the supplier to complete the replenishment order or the variability of this lead time.

Question

Quizplus · Accepted Answer

Quality can have a significant impact on the lead time taken by the supplier to complete the replenishment order. If the quality of the product is poor, the supplier may need to spend more time reworking or replacing defective items, which will increase the lead time. In addition, poor quality can also increase the variability of lead time, as the supplier may encounter more unexpected problems or delays during production. Therefore, improving quality can help reduce lead time and increase reliability in the supply chain.

Quality Has Little Effect on the Lead Time Taken by the Supplier