Lead time refers to the lag time between the placement of an order and its actual receipt. It can be reduced by implementing Just-in-Time Inventory Control (JIT).
Order processing encompasses all the activities required to prepare, confirm, and fulfill a customer order. It includes steps such as order receipt, sorting, lining, picking, packing, and shipping, aiming to ensure timely and accurate delivery.
Stockout cost refers to the costs incurred by a firm when its current inventory is exhausted for one or more items. Lost sales revenue is a primary consequence when the firm is unable to meet current orders because of a stockout condition.
Supply Chain Management (SCM) involves tracking the movement and demand for components used in manufacturing across various suppliers to provide insight and the ability to respond promptly to changes. SCM aims to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce costs.
