Lean systems maintain inventory in small lot sizes because small lot sizes:
A) increase pipeline inventory, allowing the organization to buffer against demand uncertainties.
B) increase the quality level of the product.
C) enable schedules to use machine capacities more efficiently.
D) increase manufacturing lead time because of the increase in waiting time.

Question

Quizplus · Accepted Answer

Lean systems rely on just-in-time production and small lot sizes to reduce inventory waste and increase efficiency. By enabling schedules to use machine capacities more efficiently, small lot sizes help to minimize bottlenecks and reduce the risk of overproduction. Option A is incorrect because small lot sizes actually reduce pipeline inventory by minimizing the amount of inventory held in the production process. Option B is incorrect because while small lot sizes can improve quality, this is not the main reason for using them in lean systems. Option D is incorrect because small lot sizes actually decrease manufacturing lead time by allowing for more frequent and efficient production runs.

Lean Systems Maintain Inventory in Small Lot Sizes Because Small