Lead Time - Stores
Definition: The time elapsed between identifying the need for a material and its actual delivery to the required location.
Importance:
Inventory Control: Helps in maintaining optimal stock levels.
Timely Maintenance: Ensures availability of critical spares for locomotives and rolling stock.
Cost Efficiency: Avoids emergency procurement at higher costs.
Planning & Forecasting: Facilitates better decision-making and operational efficiency.
Minimizing the Stockouts.
Components of Lead time:
Requisition time
Tendering time
Supplier lead time (Manufacture / Prepare)
Transportation time
Inspection & clearance time
Delivery to end user time
Practical Example:
Lead Time Calculation:
A Stores Depot manager identifies a need for 100 railway spare parts on 01.11.2023