Which term concerns the speed at which a supplier can deliver goods after an order is placed?

Which term concerns the speed at which a supplier can deliver goods after an order is placed?

• A. Lead time
• B. Span of control
• C. Just-In-Time (JIT)
• D. Mission statement

Answer: (A)

Lead time is the time elapsed from placing an order to receiving the goods. It directly measures how quickly a supplier can deliver after you order, which is crucial for planning stock, production, and customer service. Shorter lead times allow tighter inventory and faster replenishment, while longer lead times can increase safety stock needs and tied-up capital. The other terms don’t describe delivery speed: span of control is about how many people a manager can supervise effectively; Just-In-Time (JIT) is an approach to minimize inventory by receiving goods only as needed; a mission statement states an organization's purpose and values.

Lead time is the time elapsed from placing an order to receiving the goods. It directly measures how quickly a supplier can deliver after you order, which is crucial for planning stock, production, and customer service. Shorter lead times allow tighter inventory and faster replenishment, while longer lead times can increase safety stock needs and tied-up capital. The other terms don’t describe delivery speed: span of control is about how many people a manager can supervise effectively; Just-In-Time (JIT) is an approach to minimize inventory by receiving goods only as needed; a mission statement states an organization's purpose and values.