Which type of inventory system is most directly impacted by the adoption of lean production methods?

• A. Neither perpetual nor periodic inventory systems
• B. Only the perpetual inventory system
• C. Only the periodic inventory system
• D. Both perpetual and periodic inventory systems

Answer: (D)

Verified step by step guidance

1. Understand the concept of lean production methods: Lean production focuses on minimizing waste and improving efficiency in manufacturing processes. This often involves reducing inventory levels and adopting just-in-time (JIT) inventory practices.
2. Review the characteristics of perpetual inventory systems: A perpetual inventory system continuously updates inventory records in real-time as transactions occur, providing detailed and accurate tracking of inventory levels.
3. Review the characteristics of periodic inventory systems: A periodic inventory system updates inventory records at specific intervals, such as monthly or annually, rather than in real-time.
4. Analyze the impact of lean production methods on inventory systems: Lean production methods emphasize reducing excess inventory and maintaining minimal stock levels, which affects both perpetual and periodic inventory systems by requiring more precise tracking and adjustments.
5. Conclude that both inventory systems are impacted: Since lean production methods influence inventory management practices, both perpetual and periodic inventory systems must adapt to support the reduced inventory levels and just-in-time practices associated with lean production.