Likewise, if inventory went over a certain upper bound, then production would cease until levels were reduced to the lower limit. Companies still use this system of lean manufacturing and the Kanban methodology today.

However, with production levels much higher than they were in the middle part of the century, we are running into problems of knowing exactly where we are in the production process. It is hard to have a person go and count inventory levels, and current ERP systems are not set up to create visual displays of when we need to get more inventory or need to halt production.

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