Buy custom Hewlett-Packard Company Deskjet Printer Supply Chain (A)
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1237 |
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This is a problem any time demand is loaded inside of the total lead-time of the product. The total lead-time is the amount of time it takes to secure all of the lower level materials and build, test, and package the product. If demand is consistently loaded inside of the total lead-time, chances are that some inventory will be stranded due to missing parts...
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Total lead-time
The issue is the inventory exposure that a company assumes with the difference between total lead-time and the lead-time that is quoted to customers. If a company quotes a lead-time of four weeks for its product but has a total lead-time of sixteen weeks to make the product, then the company has twelve weeks worth of exposure...
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