Total lead time: processing orders, procuring and manufacturing items, transporting items.
Transportation costs are lowest when large quantities of items are transported between stages of supply chain.
Lead time can be reduced if items are transported immediately after they are manufactured.
Thus, there is a trade-off between holding items until enough accumulate to reduce transportation costs, and shipping them immediately to reduce lead time.
Again, this trade-off cannot be completely eliminated, but information can be used to reduce its effect.
Transportation costs can be controlled as described in the previous section, reducing the need to hold items until a sufficient number accumulate.
Improved forecasting techniques and information systems reduce the other components of lead time.