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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Strategic Characteristics of Lean Systems

The philosophy of lean systems, applicable at the process level, is also applicable at the supply chain level. Factors, both within and outside the firm, arising from supply chain and process considerations that have an important impact in creating and implementing lean systems, are discussed next in this section.

Supply Chain Considerations in Lean Systems

In this section, we discuss the two salient characteristics of lean systems that are related to creating and managing material flows in a supply chain: close supplier ties and small lot sizes.

Close Supplier Ties 

Because lean systems operate with low levels of capacity slack or inventory, firms that use them need to have a close relationship with their ...

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