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What Are the Five Guidelines for Implementing a Lean Supply

question 7

Essay

What are the five guidelines for implementing a lean supply chain presented by Womack and Jones,in their book Lean Thinking?


Definitions:

Optimal Capital Structure

The best combination of debt and equity financing that maximizes a company's value while minimizing its cost of capital.

Debt Levels

The total amount of borrowing, represented as a ratio of debt to equity or a total dollar amount.

Excessive Risk

Engaging in financial activities that have a high chance of resulting in significant loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a firm can increase profits by increasing sales.

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