Quote:
Originally Posted by subpad
Hi all,
i have a question over which lead time do we have to consider for calculating inventory calculation. here is the situation,
A manufacturer receive 1 order every week from the supplier. Actualy average supplier lead time(order lead time) is 8 weeks. if we are going to measure the safety stock for that particular item, do we have to consider lead time as 8 weeks or else 1 week(time between 2 deliveries)
in advance, thanks.
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subpad,
Who is the customer/supplier?
Inventory Planning have to follow order lead time stipulated in the sales / purchase contract unless you have other supply arrangement or agreement with the supplier.