The lead time can be less than the cumulative lead time when the company has inventory on hand.

Question

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When a company has inventory on hand, it means that it can fulfill the order without having to wait for suppliers to deliver the products. This, in turn, can result in a shorter lead time, which is the time it takes from when the customer places the order until the product is delivered. Therefore, the lead time can be less than the cumulative lead time when the company has inventory on hand.

The Lead Time Can Be Less Than the Cumulative Lead