Supplier management in a lean system:
A)May require co-location of supplier goods close to plants that receive delivery
B)Means and increase in the number of suppliers for each component
C)Generally involves short-term relationships with the buyer
D)Usually requires additional paperwork,as compared with the non-lean system

Question

Quizplus · Accepted Answer

Supplier management in a lean system may require co-location of supplier goods close to plants that receive delivery. This approach reduces lead time, transportation costs, and ensures faster delivery of goods which is one of the principles of the lean system.

Answer: D
 The opposite is true. Supplier management in a lean system usually requires less paperwork compared to a traditional system. Lean system's goal is to minimize waste and simplify processes, hence reducing paperwork and bureaucracy.

Incorrect options: 
B) Increasing the number of suppliers can lead to increased complexity, communication issues, and may increase costs. Therefore, it is not a recommended approach in a lean system. 
C) Short-term relationships do not fit within the lean system's principle of developing long-term mutually beneficial partnerships with suppliers. Hence, it's not the best choice in supplier management within a lean system.

Supplier Management in a Lean System