L4M7 Exam Dumps : Whole Life Asset Management

Average usage in a lead-time / Required level of safety stock

Required level of safety stock x Average usage in a lead-time.

Required level of safety stock – Average usage in a lead-time

Average usage in a lead-time + Required level of safety stock

The purchasing of parts in bulk at lower prices covers the costs of delivery and storage required for JIT

Parts must arrive where they are needed, when they are needed, and in the exact quantity needed

All parts arriving must be of a quality standard which is usable and free from defects

The cost of carrying increased parts inventory to meet customer demand is transferred to the customer

Suppliers must hold a buffer stock of components to ensure that they are able to meet JIT demand

Yes, as it will reduce the costs of employing labour

No, as it reduces the flexibility of the warehouse operations

Yes, organisations must use high-tech solutions where possible

No, as they are only suitable for use in non-repetitive task environments