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What are the concepts of lead time?

Updated: 9/18/2023
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13y ago

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Most industries order needed parts well in advance. Knowing that a certain part will be needed in four weeks, the company will seek bids from firms that can deliver by that date (lead time). If the merchandise isn't ready by the appointed date, the buyer can and may cancel the order or deduct a penalty from the payment.

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Q: What are the concepts of lead time?
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