Homework Solutions – Chapter 12 1. Is it possible to achieve zero inventories? Why or why not? In reality, zero inventories are a challenging, if not impossible, goal for most organizations. The concept is theoretical because the ideal production unit is one. Nothing is made until the customer expresses an unmet need for the product. In reality, inventories will always exist due to the timing between the expressed need and the actual delivery of the completed unit(s). There are inventories in transit. Some safety stock is necessary to buffer against demand and supply uncertainty. Some order batching is necessary when multiple variants of the same product are made. Nevertheless, this goal aids in understanding of the lean concepts, and remains a reference point to continually remember in the on-going improvement process. 2. Explain the relationship between quality and productivity under the lean operations philosophy. Under JIT, quality and productivity are key and equal partners.
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This note was uploaded on 09/29/2011 for the course MGT 3501 taught by Professor Chang during the Fall '10 term at Georgia Tech.