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What is Your Dock-to-Stock Time?

June 23 spkhadmin

Storeroom Personnel

The Influence of Lead Time

One of the most important aspects of spare parts inventory management, in fact any inventory management, is the lead time. Lead time has a major influence on how much stock you hold.

Lead time is one of two key factors in determining your cycle stock quantity.
Lead time variability is one factor impacting your safety (or buffer) stock quantity.
Lead time has a major influence on your re-order quantity.
Lead time is a influential factor in determining spare parts criticality and the associated risk management.

Understanding lead time is very important and it’s no wonder that there are so many discussions on lead time. But why is it that lead time and the elements that make up lead time are so misunderstood?
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Filed Under: Storeroom Management

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