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Toyota gradually shifted away from the tenet of lean manufacturing. Seeking cost...
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Toyota gradually shifted away from the tenet of lean manufacturing. Seeking cost leadership and market leadership has gone too far, and differentiation through quality, reliability and fuel efficiency becomes blurred. The execution of such business strategy the past few years has lured Toyota to rush into relationships with suppliers it has not adequately vetted and to apply questionable security measures as it sourced parts from all around the world. Given Toyota’s current problems with their suppliers, it might be worthwhile to keep more inventory on hand to avoid stock-out situations. There are however disadvantages of keeping too much inventory. Which one of the following is a disadvantage of keeping too much inventory?
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