Companies using lean systems generally have:
A) many suppliers to ensure that material shortages never occur.
B) suppliers that are located nearby to decrease delivery lead time.
C) suppliers that are willing to accept short-term contracts.
D) suppliers who are low-cost producers.

Question

Quizplus · Accepted Answer

Lean systems prioritize reducing waste and optimizing efficiency, so having nearby suppliers allows for quicker replenishment of materials and reduces transportation time and costs. Having many suppliers (option A) can actually lead to more inefficiency and complexity in managing relationships and inventory. Suppliers accepting short-term contracts (option C) may not provide consistent and reliable supply, which is crucial in a lean system. Similarly, focusing solely on low-cost producers (option D) may sacrifice quality and reliability.

Companies Using Lean Systems Generally Have