Ask AI: literature review on Challenges and opportunities associated with managing lead time with citations and reference

A literature review on Challenges and opportunities associated with managing lead time: Introduction: Lead time is defined as the time elapsed between the customer's order and the delivery of the product or service (Gunasekaran et al., 2001). Managing lead time effectively is crucial for businesses as it impacts inventory levels, customer satisfaction, and overall competitiveness (Hartati et al., 2019). This literature review discusses the challenges and opportunities of managing lead time, highlighting relevant academic sources. Challenges associated with managing lead time: 1. Supply chain complexity: The complexity of supply chains often prolongs lead times due to dependencies on multiple suppliers and their unique lead times (Choi and Hong, 2002). Managing this complexity is a significant challenge facing businesses attempting to reduce lead time. References: - Choi, T.Y., & Hong, Y. (2002). Unveiling the structure of supply networks: Case studies in Honda, Acura, and DaimlerChrysler. Journal of Operations Management, 20(5), 469-493. - Gunasekaran, A., Patel, C., & Tirtiroglu, E. (2001). Performance measures and metrics in a supply chain environment. International Journal of Operations & Production Management, 21(1/2), 71-87. 2. Uncertainty and variability: Uncertainty in customer demand, production, and distribution processes can lead to longer and unpredictable lead times (Lee et al., 1997). Identifying and addressing the sources of variability in these processes is essential for managing lead time effectively. References: - Hartati, S., Rahardja, S., & Puspitasari, N. (2019). Lead time reduction to improve customer satisfaction using lean six sigma approach: A case study. IOP Conference Series: Materials Science and Engineering, 544, 012037. - Lee, H.L., Padmanabhan, V., & Whang, S. (1997). The bullwhip effect in supply chains. Sloan Management Review, 38(3), 93-102. Opportunities associated with managing lead time: 1. Adopting Just-In-Time (JIT) and Lean Manufacturing principles: JIT and Lean Manufacturing principles emphasise reducing lead time, minimising inventory, and eliminating waste in production processes (Womack et al., 1990). Implementing these techniques can enhance the efficiency of operations and lower lead times. References: - Womack, J.P., Jones, D.T., & Roos, D. (1990). The Machine That Changed the World. New York: Rawson Associates. 2. Implementing supply chain collaboration and information sharing: Collaboration between suppliers, manufacturers, and retailers can lead to more accurate forecasts and better inventory management (Simatupang and Sridharan, 2002). This, in turn, allows for shorter lead times and improved customer service. References: - Simatupang, T.M., & Sridharan, R. (2002). The collaborative supply chain. The international journal of logistics management, 13(1), 15-30. 3. Investing in technology and automation: By integrating advanced technologies such as robotics, artificial intelligence, and the Internet of Things (IoT) into supply chain processes, businesses can lower production and delivery times, thus reducing lead time (Kache and Seuring, 2017). References: - Kache, F., & Seuring, S. (2017). Challenges and opportunities of digital information at the intersection of Big Data Analytics and supply chain management. International Journal of Operations & Production Management, 37(1), 10-36. Conclusion: Managing lead time effectively is crucial for businesses in today's competitive marketplace. Challenges such as supply chain complexity and uncertainty must be addressed, and organisations should explore opportunities like JIT, Lean Manufacturing, supply chain collaboration, and the adoption of advanced technologies to reduce lead times and improve overall performance.