Transportation Operations LINCS Practice Exam

Question: 1 / 485

The time it takes for a supplier to deliver an item after the purchase order is placed is known as:

Lead time

Lead time is the term that describes the amount of time it takes for a supplier to fulfill a purchase order and deliver the requested items once the order has been placed. This includes the entire duration from the moment the purchase order is issued to when the goods are received, encompassing various processes such as order processing, manufacturing (if applicable), and shipping.

Understanding lead time is crucial for supply chain management and inventory control, as it directly influences the ability to meet customer demand and maintain adequate stock levels. A shorter lead time can enhance responsiveness and efficiency, while a longer lead time may lead to stockouts and unmet customer expectations. The other terms, such as queue time, picking time, and wait time, pertain to different aspects of the supply chain and do not specifically address the elapsed time from order placement to delivery.

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Queue time

Picking time

Wait time

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