Total Supply Chain Response Time

Posted in Operations and Supply Chain Terms, Total Reads: 1369
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Definition: Total Supply Chain Response Time

Total supply chain response time is supply chain’s ability to respond quickly to market demand. It is time taken by supply chain to rebalance after a change in market demand is noticed.

Calculations of total supply chain response time involves following factors

1. Forecast Cycle Time

2. Intra manufacturing Re-Plan Cycle Time

3. Re-Plan Cycle time

4. Market Cycle time

5. Order fulfillment lead time


Sometimes minimum change in market demand is defined against which supply chain response time is measured. Generally it is measured against 20% change in market demand.

Responsiveness of supply chain can depend on many factors such as size of supply chain, number of components involved, flexibility of producer & distributor, Bottlenecks if any, alternatives to each activity or each path etc.

 

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