A basic requirement for operating with the low inventories present in lean systems is:
A) Inventory space must be increased.
B) Inventory investment must be increased.
C) Major problems must be identified.
D) Major problems must have been solveD.
E) Inventories must be reduced rapidly.

Question

Quizplus · Accepted Answer

The basic requirement for operating with low inventories in lean systems is to have solved major problems. This means that the root causes of inventory issues, such as poor quality, long lead times or inefficient processes, must have been addressed and eliminated to ensure that inventory levels can be reduced without causing disruptions or problems. Simply increasing inventory space or investment or reducing inventories rapidly without addressing underlying problems can be risky and may not lead to sustainable improvements in inventory management.

A Basic Requirement for Operating with the Low Inventories Present