Supplier Lead Time & Reordering — Assessment

1. What does supplier lead time include?

Only the supplier’s promise Only shipping Only your receiving Order processing, production, shipping, and receiving — order to shelf

2. How should you measure real lead time?

Average PO-date to goods-received date over recent orders Guess Trust the supplier’s promise Use the shortest ever

3. A supplier promises 5 days but your POs averaged 7.3. Which should you plan on?

7.3 days plus a buffer 5 days 0 days 1 day

4. At 20 units/day and a 7.3-day lead time, the reorder point is roughly:

20 units 5 units 100 units 146 units plus a buffer

5. Why does wider lead-time variability demand more safety stock?

To cover the slow deliveries, not just the average one It does not To slow reordering To raise tax

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