What would be an example of a lead time issue?

A lead time issue specifically refers to the period between initiating an order and the moment that the ordered stock is received and ready for sale or use. In this context, a delay between placing an order and receiving stock directly illustrates the concept of lead time because it emphasizes the length of time that inventory is effectively unavailable due to the ordering process.

Lead time issues can impact inventory levels significantly, as longer lead times can lead to stockouts, where customers cannot purchase items due to unavailability. This scenario can result in lost sales opportunities and reduced customer satisfaction. It highlights the importance of managing supplier relationships and logistics effectively to ensure timely replenishment of stock.

In contrast, the other options illustrate different retail challenges that do not specifically relate to the concept of lead time. For example, insufficient shelf space pertains to merchandising and space management, high customer traffic leading to stockouts relates to poor inventory management or demand forecasting, and excessive markdowns on non-selling items reflect pricing strategy inefficiencies.