GLTM -  End Module  Group 1 Presentation.

GLTM - End Module Group 1 Presentation.. Answer for Question 2.

In order to ​explain how a reduction in Lead-time can help a supply chain reduce its inventory buffer without hurting customer service;.

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This, therefore, is the reason why supply chains must hold stocks also known as inventory, to cushion demand from customers, a situation also known as buffering. Nonetheless the goal of good warehouse management system is to make sure that the inventory is always kept to the minimum, (Gattorna, J. & Walters, D. 1996), since high inventory holds up working capital of the business and it is costly to manage too. (Lusch, R. and Kenderdine, J. 1978). However, the target must be maintaining safety stock (SS) levels all the time to counteract any unforeseen upsurge in customer demand. As such, the supplier with an efficient warehouse management system (WMS) in place should be able to reduce inventory up to the SS level to boaster working capital without hurting its supplying obligations nor customer satisfaction..

GO c YCLE LEAD TIME. Therefore, by reducing lead time in business; since customers tend to receive their ordered goods or services earlier, thereby decreasing customers’ own wait time, and hence providing the business with an added advantage over its competitors, the supply chain will in turn get paid quicker and possibly fulfil the next process faster too, and in the end make more money with an increasing customer satisfaction..

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