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For example if a seven day lead time is acceptable to your customers then you might be able to lower your inventory levels and rely on smaller purchase quantities reducing tied-up capital or you could place on-demand orders with your suppliers if they have short lead times. 767 is your average lead time for this example.

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One appropriate measure to reduce replenishment lead times is to.

Use a Domestic Supplier. The total number of lead times 46 divided by the total number of orders placed 6 767. From the results achieved by VSM it was obvious that. Line Balance Activities etc. Situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits are referred to as incentive obstacles. 20When setting target service levels consider your customers expectations in terms of availability and delivery times.

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| Content: Synopsis | 
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| Content: Solution | 
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| Content: Analysis | 
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| Content: Answer Sheet | 
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| Content: Learning Guide | 
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