Final answer:
The delay between receiving raw materials and having finished goods available is called lead time, which should be minimized to ensure efficiency. Optimal locations and transport options can reduce these lead times, and in logistic models, delays in feedback can cause system overshoot.
Step-by-step explanation:
The delay between receipt of raw materials and the availability of the finished goods produced from them is referred to as lead time. For the whole system, lead time should be as short as possible. When considering the logistics of shipping finished goods, finding locations near uncrowded freeways is crucial, as it enables a smoother travel for both workers and materials to and from a factory. The presence of rail or water transport options amplifies these efficiencies, making transport more cost-effective.
In more technical terms, with reference to logistic growth models, the delay in feedback mechanisms can cause overshoot in the system. This means that a delay in adjusting to changes in demand or supply can lead to excess inventory or shortages. It is essential in business operations to have a delay that is shorter than the natural timescale of the problem to avoid these issues. For instance, in logistics and supply chain management, reducing lead times can minimize the risks of overshoot and improve responsiveness to market demands.