Organizations Practicing Lean Production Often Increase Their Inventory Levels in Order

question 15

True/False

Organizations practicing lean production often increase their inventory levels in order to create a cushion against variability so that they can investigate and eliminate the weaknesses in their systems.

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Definitions:

Transportation

The movement of goods and people from one location to another using various modes such as trucks, trains, ships, and airplanes.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the end customer.

Safety Inventory

Extra inventory held to guard against uncertainty in demand or supply, ensuring adequacy of stock to meet customer orders without interruption.

Physically Aggregating

The process of collecting and assembling goods from various sources to streamline distribution or processing.