Question.5101 - W3: Safety Inventories and Product AvailabilityPrompt:Discuss how a reduction in lead time can help a supply chain reduce safety inventory without hurting product availability. In addition to reading your assigned resources for week 3, research online definitions for inventory holding and carrying costs, optimal lot sizing, and quantity discounts.
Answer Below:
Class xxxxxxxx lead xxxx the xxxxxxxx between xxxxxxx an xxxxx and xxxxxxxxx goods xxx greatly xxxxxx the xxxxxxxxx for xxxxxx inventory xxxxxxx jeopardizing xxxxxxx availability xx situations xxxxx demand xx supply xxxxxxxxxxx is xxxxxxx companies xxxxxxxx uncertainty xx maintaining xxxxxx stock xxxxxxxxxxxx shorter xxxx times xxxxxxxx both xxxxxx forecast xxxxxxxxxxxx and xxxxxxxxxxxxx to xxxxxx interruptions xxxxxxxx supply xxxxxx to xxxxxxxx with xxxxxx inventories xxxxxxxxx Holding xxx Carrying xxxxxxxxxxxx costs xxx expenses xxxxxxxxxx with xxxxxxxxxx storing xxxxxxxxx and xxxxxxxx costs xxxxx encompass xxxxxxx costs xxxxx with xxxxxxxxxxx costs xx capital xxxxxxxxx and xxxxxxxxxxxx are xxxxxxxx linked xx inventory xxxxxx By xxxxxxxx lead xxxx buffer xxxxx is xxxxxxxxx which xx turn xxxxxx these xxxxx Each xxxx eliminated xxxx safety xxxxx results xx financial xxxxxxx over xxxx Optimal xxx SizingLot xxxxxx pertains xx the xxxxxxx order xxxxxxxxxx that xxxxxxxxx setup xxxxx with xxxxxxx costs xxxxxxxxxxxx Economic xxxxx Quantity xxx models xxxxxxx stable xxxx times x decrease xx lead xxxx implies xxxx more xxxxxxxx smaller xxxxxx become xxxxxxxxxxxx This xxxxxxxx responsiveness xxxxx maintaining xxxxxxx inventory xxxx improving xxxx flow xxx operational xxxxxxxxxx Quantity xxxxxxxxxxxxxxxxx quantity xxxxxxxxx promote xxxx purchases xxxxxxxxxxx by xxxxxx safety xxxxx shorter xxxx times xxxxxx the xxxxxxxxx to xxxxx excessive xxxxxxx This xxxxxxx companies xx avoid xxxxxxxxx higher xxxxxxx costs xxx volume xxxxxxxxx instead xxxxxx for xxxxxxx just-in-time xxxxxx that xxx more xx line xxxx actual xxxxxxxxxxx In xxxxxxxxxx shorter xxxx times xxxxxxxx uncertainty xxxxx safety xxxxxxxxx and xxxxxxx reduce xxxxxxx and xxxxxxxx costs xxxxx facilitating xxxx flexible xxx sizing xxx alleviating xxx pressure xx over-order xxx discounts xxx without xxxxxxxxxxxx product xxxxxxxxxxxxMore Articles From Management
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