The sign of lead time

• The aim of this paper is to investigate how the level of customization of constituent items affects cost and lead time. This is done by using one empirical illustrations, from the hydraulic pump manufacturer Parker, of when an item was offered customizable without considering the effect it had on the strategic lead times. It is concluded that the CDP-method that simultaneously regards strategic lead times, level of customization and the process driver of an item, increases the possibility to make informed decision and thereby lower the total cost by not sub-optimizing.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

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