Readiness to deliver describes the ability of a supplier to deliver ordered or requested products immediately from existing stocks within the delivery time specified by the supplier. It is used to control stock levels and provides information about a company’s stock policy.
As an indicator, the readiness to deliver describes the average delivery capacity of a supplier. It can be measured by the degree of readiness to deliver. If the warehouse is not immediately ready for delivery despite existing demand, the degree of readiness to deliver is less than 100 percent. A too low degree of readiness to deliver leads to shortage costs. On the other hand, too high a degree of readiness to deliver causes high capital commitment and storage costs. In practice, it is therefore important to find a middle way.
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