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The Toyota Way by Jeffrey Liker

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Chapter 9Principle 3: Use "Pull" Systems to Avoid Overproduction

The more inventory a company has, … the less likely they will have what they need.

—Taiichi Ohno

 

Imagine that you find out about a great Internet service where you can get all your dairy products delivered directly to your house at a significant discount. The only hitch is that you have to sign up once and specify a weekly quantity of each item and the company will only guarantee that the delivery will come some time during the week. The company has to schedule weekly shipments of goods to its warehouse, so it wants advance orders locked in to make sure it sells all the inventory that it receives. They will leave it on your front porch in a thermo container so it will stay cold. ...

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