Pak Exam MCQs
A. Demand
B. Duration
C. Lead time
D. Process
Answer & Solution
Option: C
Explanation :A lead time is the latency between the initiation and execution of a process. For example, the lead time between the placement of an order and delivery of a new car from a manufacturer may be anywhere from 2 weeks to 6 months. One Business Dictionary defines “manufacturing lead time” as the total time required to manufacture an item, including order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time. For make-to-order products, it is the time taken from release of an order to production and shipment. For make-to-stock products, it is the time taken from the release of an order to production and receipt into finished goods inventory.
Explanation :A lead time is the latency between the initiation and execution of a process. For example, the lead time between the placement of an order and delivery of a new car from a manufacturer may be anywhere from 2 weeks to 6 months. One Business Dictionary defines “manufacturing lead time” as the total time required to manufacture an item, including order preparation time, queue time, setup time, run time, move time, inspection time, and put-away time. For make-to-order products, it is the time taken from release of an order to production and shipment. For make-to-stock products, it is the time taken from the release of an order to production and receipt into finished goods inventory.
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