The key to managing by theoretical minimums is to understand how to decompose lead-time
into two buckets.
The effect of lead-time
variability on optimal policies depends on the inventory cost structure: A more variable lead time needs a higher optimal base-stock level if and only if the unit penalty (holding) cost rate is high (low).
For information on tire cage pricing and lead-time
, contact the following manufacturers:
reduction is also possible using lean-manufacturing concepts that stress continuous "flow" processing and low work-in-process inventory.
Despite this financial restriction, Smith cites the short lead-time
mindset that he must employ in his foundry as the greatest offshoot of the captive mentality.
have declined, a consequence of newer technologies, firms' forecasts of future requirements have become somewhat less clouded, and the desired amount of lead-time
insurance in the form of a reserve stock of capital has been reduced.
Furlano maintains that Asian toolmakers' lead-time
reduction strategies can have negative implications for quality: "A tool designed for manufacturability isn't always the same as a tool designed for quality.
reduction within the supply-production-distribution chain is the mechanism for time-based competition.
The system achieves lead-time
savings by maximizing the use of standardized, pre-manufactured frames and components.