What is the best way to determine lead time for a component in MRP?
Lead time is a crucial factor in material requirements planning (MRP), the process of calculating the materials and resources needed to produce a product. Lead time is the amount of time it takes to receive a component from a supplier or to make it internally. Knowing the lead time for each component helps you plan your production schedule, avoid stockouts, and optimize your inventory levels. But how do you determine the best way to estimate lead time for a component in MRP? Here are some tips and methods to help you.