Lead time in an inventory system is:
A)The time it takes to sell inventory
B)The time it takes to move raw materials inventory from the warehouse to the manufacturing facility
C)The time between placing an order for inventory and the when the inventory is received
D)The time it takes to manufacture a product plus the time it takes to ship the product to the customer.

Question

Quizplus · Accepted Answer

Lead time in an inventory system refers to the time between placing an order for inventory and when the inventory is received. It is the time required for the procurement and delivery of goods. Choice A refers to sales turnover, choice B refers to raw material movement, and choice D includes manufacturing and shipping time, which is not necessarily related to inventory procurement.

Lead Time in an Inventory System Is