One of the major objectives of introducing a new logistics system is generally considered to be shortening the lead time of its supply chain. The purposes of this paper are : 1) to clarify how lead time is made up, 2) to introduce a concept of target lead time or standard lead time as a measure of a logistics system and its performance, and 3) to propose how to set the standard lead time. For setting standard lead time, a method of “pull scheduling” is adopted in which the activities of all the processes can be pulled out according to the customers' demands.
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