"Inventory hides problems and inefficiencies". Explain this preposition and highlight the need for Pull Systems.

The proposition "Inventory hides problems and inefficiencies" is a fundamental principle in materials management and operations, especially within lean manufacturing philosophies. It suggests that excessive inventory can mask underlying issues in a production or supply chain system, such as poor quality, machine breakdowns, long setup times, or unreliable suppliers. These problems may not be immediately visible because the buffer stock allows production to continue despite inefficiencies. However, this false sense of security leads to higher carrying costs, obsolescence, and reduced responsiveness to customer demands.

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