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A Basic Requirement for Operating with Low Inventories in Lean

question 91

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A basic requirement for operating with low inventories in lean systems is that major system problems must already have been solved and new problems will be solved as they appear.


Definitions:

Market Breadth

Market breadth is an indicator used to gauge the health of the equity market, based on the number of stocks advancing versus those declining.

Short Interest

The overall sum of shares in a certain stock that have been shorted by investors and still haven't been covered or concluded.

Odd-lot Trading

The buying or selling of stocks in quantities that are less than the standard trading unit or lot prescribed by a stock exchange.

Mental Accounting

A behavioral economics concept describing how people categorize and utilize money differently based on subjective criteria, often leading to irrational financial decisions.

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