GLTM -  End Module  Group 1 Presentation.

[Audio] GLTM - End Module Group 1 Presentation. Answer for Question 2.

[Audio] In order to explain how a reduction in Lead-time can help a supply chain reduce its inventory buffer without hurting customer service; I would like to start by defining what lead time is. According to Christopher, M. (1982), lead-time is understood to be the time taken after a customer places an order with a supplier to the time the product or service is finally filled and received by the customer..

[Audio] For example: A person may decide to buy a custom-made dining set from a furniture shop. Lead time in this case begins the moment the contractual agreement is done and ends just when the customary made dining set is received by the purchaser..

[Audio] In other words as (Zimmerman, 2001) puts it; lead time is the amount of time will be required according to the vendor, to supply what the customer has requested or demanded..

[Audio] Therefore, by reducing lead time in business; customers tend to receive their ordered goods or services earlier, thereby decreasing customers' own wait time, and hence providing the business with an added advantage over its competitors. The supply chain will in turn get paid quicker and possibly fulfil the next process faster too, and in the and make more money with an increasing customer satisfaction..

[Audio] Thank you for watching. Please stay on for the next Video....