Are these statements True or False? A direct benefit of Kanban system is to improve quality. Defective items require to rework or replacement is NOT considered as a process waste in lean operations. One-piece flow is applied in production process to reduce or eliminate the waste of unnecessary Transportation. In lean operations, use process standardization in production is a practice to efficiently match supply and demand. To develop the most efficient workspace in the day-to-day operations is a focus of “Kaizen”. Better eliminate waste of unnecessary Transportation is a direct benefit related to pull system. Efficiently match supply with demand is a fundamental focus in the “just in time” lean principle. Reorder point does not affect the safety stock level in the EOQ model. In the EOQ inventory model, if order quantity increases, the annual inventory holding cost always decreases. The two most important decisions made by the EOQ inventory models are when place an order and the total cost of the order. If a firm decides to increase its service level if production, the corresponding stock out risk would decrease.
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