KNOWLEDGE LIBRARY

Meta

The Role of Customer Service Leadtimes

Customer response time requirements are also a significant contributor to inventory requirements. If required customer response times are longer than supplier and/or manufacturing lead times; no inventory is required. If that is not the case, then the shorter the response time requirement, the greater the inventory requirement. The increase is normally due to additional facilities required in close proximity to customers, and their associated inventory deployment requirements. As described earlier, the greater the number of inventory stocking locations, the greater the inventory requirements.

Leave a Reply

Your email address will not be published.