Why might a company want to reduce the lead times on its pur

Why might a company want to reduce the lead times on its purchased materials and components?

Solution

Lead time is defined as the time between the stating and end of the process. The companies tries to reduce the lead time to complete the finish product more quickly , this increases the output of the company hence the productivity of the company increases The purchased raw materials and components are placed in the inventory, therefore to reduce the lead time the inventory should have to be organized,.Therefore the companies have to ensure minimum lead time for higher output at lower cost which wil be a competitive advantage for that company.