Principle 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 you discover 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 must sign up and specify a weekly quantity of each item for the coming month. 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. If you’re not home when your order arrives, the delivery person will leave it on your front porch in a thermo container to keep it cold. Since you are not sure how much you ...
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