What are the supply chain implications of the lean system emphasis on small lot sizes?
What will be an ideal response?
Small lot sizes reduce average inventory levels (relative to large lots) throughout the entire supply chain. Small lots also pass through the system more quickly, because they do not keep materials waiting. Defective items are discovered more quickly, and shorter delays result from correcting a problem with a smaller lot. In addition, they help achieve a uniform workload and prevent overproduction. One disadvantage of small lots is that they increase the frequency of setups, so lean systems direct a great deal of attention to reducing setup times. Often, an objective of single-digit setups is established, which represents the firm's goal to have setup times of less than 10 minutes.
You might also like to view...
Variables that measure the effect of the independent variables on the test units are called ________
A) interdependent variables B) concurrent variables C) extraneous variables D) concomitant variables E) dependent variables
According to Jobvite, what percentage of employers use social media in their recruiting process?
A) less than 10 percent B) about than 25 percent C) about half D) about 75 percent E) more than 90 percent