What is the lead time required to respond to a customer


Product C is assembled from components D and E. Item D is made from item F and item G. Item F is made from item J and item K. Item E is made from item H and item I. Item H is made from item J. All parent items require 1 unit of their respective component items. The lead times for each item are listed in table 7.15.

a) what is the lead time required to respond to a customer order for product C, assuming that there are no existing inventories or scheduled receipts?
b) what is the customer response time if items J and K are in stock?
c) if you are allowed to keep either item G or item I in stock (along with items J and K from part b), which one would you choose?

Table 7.15
item Lead time (weeks)
C 3
D 5
E 6
F 5
G 1
H 1
I 3
J 1
K 3

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Accounting Basics: What is the lead time required to respond to a customer
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