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

Question

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Organizations practicing lean production aim to reduce inventory levels and achieve just-in-time delivery of products. They also aim to identify and eliminate the root causes of variability in their processes rather than relying on inventory as a cushion.

Organizations Practicing Lean Production Often Increase Their Inventory Levels in the Long-Run